What is an Osek Murshe in Israel?

An Osek Murshe (עוסק מורשה) is a term used in Israel to describe a registered business for VAT purposes. The term literally means “authorized business” and is used to refer to businesses that are registered with the Israel Tax Authority (ITA) and are liable to pay VAT on their goods and services.

VAT in Israel

Value Added Tax (VAT) is a consumption tax that is levied on most goods and services sold in Israel. The current VAT rate in Israel is 17%.

Benefits of VAT registration

There are a number of benefits to being a VAT-registered business in Israel. These include:

• The ability to reclaim VAT on business purchases
• The ability to charge VAT on goods and services sold
• The ability to issue VAT invoices

How to register for VAT

Businesses can register for VAT online or by submitting a paper application to the ITA. The registration process usually takes a few weeks.

VAT obligations

VAT-registered businesses are required to file monthly VAT returns with the ITA. These returns must show the amount of VAT that has been charged and paid on sales, as well as the amount of VAT that has been reclaimed on purchases.

VAT penalties

Businesses that fail to comply with their VAT obligations may be subject to penalties. These penalties can be significant, so it is important to ensure that you are fully compliant with all VAT requirements.

Conclusion

If you are considering doing business in Israel, it is important to understand the VAT requirements. Registering for VAT can be a complex process, so it is advisable to seek professional advice