No business file to open
You invoice a client without registering as an Osek. No opening forms, no accountant retainer, no closing process when the work ends.
Invoice your client · without opening a business
You can get paid for freelance work in Israel without opening an Osek file. NETO employs you as a salaried worker under Manpower License 1565, issues the invoice to your client, and hands you a payslip with full rights · no bookkeeping, no annual return, no accountant.
Registered with Income Tax, National Insurance and VAT
Monthly payslip · full employee rights
5% fee · nothing else to pay
AI check · backed by official sourcesThe information on this page was cross-checked against the Ministry of Labor, the Israel Tax Authority and the National Insurance Institute · NETO operates under registered Manpower Contractor License no. 1565.
Contractors registry · gov.il
Our license
AI summary · Invoicing without opening a business in IsraelClick to read the page summary
Yes · you can lawfully invoice a client in Israel without opening an Osek file, by working through a licensed manpower contractor. The model is called an employee invoice (cheshbonit lashachir): NETO employs you as a salaried worker, issues the invoice to your client in its own name, and pays you a salary. Because NETO is the employer of record, it registers you with Income Tax, National Insurance (Bituach Leumi) and VAT, withholds what the law requires, files the returns, and issues you a monthly payslip · so you receive pension, sick days, annual leave and severance provisions, subject to the terms of the engagement. You do not open a file, do not keep books, do not file an annual return and do not hire an accountant. NETO's fee is 5%, derived from the invoice the client pays (before VAT). The key thing to check in any provider is the licence: NETO holds Manpower Contractor Licence no. 1565 from the Ministry of Labor and deposits the bank guarantees the law requires against workers' wages · a service that only issues an invoice, without registering you with National Insurance, leaves your rights exposed.
Ministry of Labor · contractors registry
National Insurance Institute
Israel Tax Authority
Employee invoice · NETO
- No Osek file · the invoice is issued by NETO in its own name · lawful and reported.
- Licence 1565 · a supervised manpower contractor · bank guarantees against wages.
- All three authorities · Income Tax, National Insurance and VAT · registered by NETO.
- Employee rights · payslip, pension, sick days, leave and severance provisions.
- 5% fee · derived from the client's invoice (before VAT) · no accountant retainer.
- This page is general information · not legal, tax or accounting advice.
Table of contents
- In brief · key points
- Can you invoice without opening a business?
- Who invoices without opening a business
- The lawful routes · and the one to avoid
- Full comparison · all the routes
- What it costs · and what you keep
- Why NETO is different · all authorities, including National Insurance
- How it works · step by step
- Real-life examples
- Explainer video
- Questions and answers
- Summary and recommendations
In brief
A client wants to pay you and asks for an invoice · but you do not have an Osek file, and opening one means registration, bookkeeping, an annual return and an accountant. The employee-invoice model solves it: NETO becomes your employer, issues the invoice to the client, and pays you a salary with a payslip. You keep the freelance work · NETO carries the paperwork.
- No file to open · no bookkeeping, no annual return, no wealth declaration.
- Fully reported · Income Tax, National Insurance and VAT · all handled by NETO.
- You are an employee · payslip, pension, sick days and leave, subject to the engagement.
- 5% · derived from the invoice the client pays, before VAT · that is the whole cost.
Can you issue an invoice without opening a business in Israel?
Yes · under certain conditions. Israeli law does not let a private individual simply print an invoice: an invoice is a tax document, and it has to come from a registered entity. But it does not have to be your registered entity. It can be your employer's.
That is the whole mechanism behind the employee invoice · in Hebrew, cheshbonit lashachir. You do the work for the client. NETO · a licensed manpower contractor · employs you as a salaried worker and issues the invoice to the client under its own name and its own registration. The client pays NETO, NETO pays you a salary, and you receive a payslip with all the statutory deductions and filings already done.
The critical distinction · and the reason this page exists · is what "through a service" actually means. NETO holds registered Manpower Contractor Licence no. 1565 from the Ministry of Labor and registers you with all three authorities · Income Tax, National Insurance (Bituach Leumi) and VAT. A service that merely issues an invoice on your behalf, without that registration, is not the same thing · and the gap shows up exactly when you need it: sick leave, maternity, unemployment.
In simple terms
- You do the work and set the price with the client
- NETO is the employer · issues the invoice, runs the payroll, files the returns
- The client gets a proper, lawful tax invoice
- You get a payslip · not a headache
Check the licence. Ask any provider for its manpower contractor licence number, then look it up in the Ministry of Labor registry. NETO's is 1565.
Who invoices without opening a business
The employee-invoice model fits people whose income is real but irregular · or who simply do not want to run a business alongside the work itself. Four groups come up again and again.
Software developers and digital freelancers
Developers, designers, marketers and content people working with Israeli and global clients · project work that does not justify the overhead of a registered business.
Consultants and first-time self-employed
Your first paid engagement, with no experience of running an Osek file · you want to start earning now and decide about a business later, not the other way round.
Working with clients abroad
Israelis · including new immigrants and English-speaking residents · being paid by US, European or other overseas clients who need an invoice they can put through their own books.
Employees earning on the side
You already have a salaried job and want additional income from a side project · without the bureaucracy of a second tax file running in parallel.
One-off and occasional work
A single job, a short project, or work that happens a few times a year · where opening a file and then closing it costs more than the job is worth.
Students and people between roles
Income that comes and goes, while you want to keep accruing National Insurance rights and stay fully reported · with nothing to wind down when the work stops.
The lawful ways to invoice · and the one to avoid
There are two legitimate routes, and one thing people do that is simply against the law. It is worth knowing which is which before the first payment lands.
1 · Employee invoice through a licensed manpower contractor
NETO is your official employer. It issues the invoice to the client, receives the payment, and pays you a salary. Registration with National Insurance, Income Tax and VAT is done by NETO · you do not open a file, do not keep books, do not file an annual return and do not need an accountant. You are a salaried employee, so pension, sick days, annual leave and severance provisions apply, subject to the terms of the engagement. Read more about how the employee invoice works, or about the Osek Sachir arrangement in Israel.
2 · Opening an Osek Patur (exempt dealer)
The classic route for small independent income. An Osek Patur suits annual turnover up to roughly 120,000 ILS · the ceiling is set annually, so confirm the current figure with the Israel Tax Authority before you rely on it. You register yourself with VAT and Income Tax, report yourself, and keep basic books. It is a real option · but it is a business, with everything that implies: you handle your own National Insurance, your own annual return, and your own compliance. It does not suit everyone.
3 · Issuing an invoice with no registration · not lawful
Some people simply issue an invoice, or a receipt, without being registered with the authorities at all. This is a tax offence. It exposes you to fines, penalties and · in serious cases · criminal liability, and it leaves the client exposed too, because the document they filed is not valid. If a route sounds like it skips the authorities entirely, that is the reason to walk away from it.
The question that decides it
- Do you want to run a business · books, returns, an accountant? → Osek Patur
- Do you just want to get paid for the work, fully reported? → employee invoice
- Is the income irregular or one-off? → employee invoice, nothing to wind down
Not a shortcut: issuing an invoice without registering with the authorities is a tax offence · not a grey area. No fee saving is worth that exposure.
All the routes · side by side
Employee invoice through NETO, compared with opening an Osek Patur (exempt dealer) or an Osek Murshe (licensed dealer) yourself.
| Criterion | Employee invoice · NETO | Osek Patur | Osek Murshe |
|---|---|---|---|
| Business registration required | Not required | Required | Required |
| National Insurance (Bituach Leumi) | NETO registers you and reports | You register and report | You register and report |
| Bookkeeping | Not needed | Basic | Full · plus an accountant |
| Monthly payslip | Yes | No | No |
| Employee rights · sick days, leave, pension | Yes | No | No |
| Annual tax return | No · NETO files | Yes | Yes |
| Income limit | No limit | Approx. 120,000 ILS per year | No limit |
| Setup complexity | One registration | Medium | High |
| Invoicing overseas clients | Yes · any currency | Yes | Yes |
| What happens when the work stops | Nothing to close | You must close the file | You must close the file |
The Osek Patur turnover ceiling is updated each year · verify the current figure with the Israel Tax Authority. Employee rights apply subject to the terms of the engagement and to Israeli labour law.
What it costs · and what you actually keep
NETO's fee is 5%, derived from the invoice the client pays, before VAT. There is no separate accountant retainer, no bookkeeping software, no registration fee and no annual return to pay for.
| Parameter | Employee invoice · NETO | Osek Patur · on your own |
|---|---|---|
| Worked example · invoice to the client | 10,000 ILS | 10,000 ILS |
| Service fee | 5% · all inclusive | No fee · but see below |
| Accountant / bookkeeping | Included · nothing extra | A recurring monthly cost |
| National Insurance | Deducted and reported by NETO | You calculate, pay and report |
| Income tax | Withheld monthly by NETO | Advances plus an annual return |
| Admin time per month | Zero | Several hours |
| Employee rights accrued | Pension, sick days, leave, severance | None |
The headline comparison is tempting but misleading. An Osek Patur has "no fee" · yet pays an accountant every month, pays their own National Insurance, and spends hours on admin that could have been billable. Once those are counted, the gap narrows sharply, and for irregular or modest income it often reverses.
Your actual take-home cannot be stated as a single number, and any page that gives you one is guessing. It depends on your tax credit points, your total annual income, whether you have another job, and your personal circumstances. What can be said precisely: the fee is 5%, the statutory deductions are the ones the law requires and no others, and the payslip shows every line.
The model tends to make most sense when simplicity and full compliance matter more to you than squeezing the last shekel out of a deduction you would have had to hire someone to find. For a fuller picture of the service, see NETO's payroll solution for freelancers · and if you are weighing the two forms of income, self-employed versus salaried National Insurance sets out the difference.
What is not in the 5%
- Nothing. No setup fee, no monthly minimum, no exit fee
- No accountant retainer · NETO files
- No charge for issuing invoices, however many
- No charge for the payslip or the annual filings
Figures on this page are illustrative. Israeli VAT is 18% and is charged to the client on top of the invoice · it is not a cost to you.
No business needed
Got a client waiting for an invoice?
Register in a few minutes · NETO issues the invoice, handles the authorities and pays you a salary with a payslip. Nothing to open, nothing to close.
Registered with all the authorities · including National Insurance
"Issuing an invoice for you" and "employing you lawfully" are not the same service. The difference is invisible on the day you sign up · and decisive on the day you need to claim something.
Income Tax · Mas Hachnasa
Monthly withholding at source and periodic filings, made by NETO. Your tax credit points are applied to the calculation · and there is no annual return for you to file.
National Insurance · Bituach Leumi
You are reported as a salaried employee, so entitlement builds in the salaried track · sick pay, maternity and unemployment, subject to the Institute's qualifying conditions.
VAT · Ma'am
The invoice to your client is issued under NETO's registration · a valid, authorised tax document the client can file. VAT in Israel is 18%, charged on top.
Pension and social benefits
Pension contributions are made as Israeli labour law requires for a salaried employee, subject to the terms and duration of the engagement.
Licence 1565 · and guarantees
NETO holds registered Manpower Contractor Licence no. 1565 and deposits the bank guarantees the law requires against workers' wages · supervised by the Ministry of Labor.
Full employer liability
NETO carries the employer's obligations · it is the party that stands before the authorities, not you.
Here is the practical test. Ask a provider two questions: "What is your manpower contractor licence number?" and "Will you register me with National Insurance?" A licensed employer answers both immediately, and the number can be checked against the public registry in seconds.
Where a service only issues an invoice · without holding a manpower licence, without depositing wage guarantees, and without reporting you to National Insurance · your rights may not be accruing at all. You would find out when you claim sick pay, maternity or unemployment and discover there is no salaried record behind you. That is a bad moment to learn the difference.
NETO's licence is public and verifiable: look up company number 515486058 in the Ministry of Labor contractors registry, or see our licence page for the full detail.
What you actually get
Eight things that change the day you stop chasing paperwork and start sending invoices. Swipe to see them all.
A licensed, supervised employer
NETO holds manpower contractor licence 1565 and is supervised by the Ministry of Labour, including bank guarantees lodged against workers’ wages.
5% · and nothing else
One fee on the invoice. No registration fee, no monthly subscription, no minimum, no exit fee, no hidden charges.
Zero monthly admin
No bookkeeping, no VAT filings, no annual report. The filings and the payments to the authorities are handled for you.
Payslip and money, fast
Once your client approves and pays, you get a payslip and the money reaches your bank · no chasing paperwork.
Rights of a salaried worker
The engagement runs under Israeli labour law by a licensed employer · National Insurance and pension are handled as part of it.
Foreign clients welcome
Invoice a client abroad in a foreign currency. Export of services can qualify for zero-rated VAT, subject to the conditions in the law.
One-off or ongoing
Works for a single gig, an occasional client, or steady monthly work · with no commitment either way.
No business file to open
You invoice a client without registering as an Osek. No opening forms, no accountant retainer, no closing process when the work ends.
A licensed, supervised employer
NETO holds manpower contractor licence 1565 and is supervised by the Ministry of Labour, including bank guarantees lodged against workers’ wages.
5% · and nothing else
One fee on the invoice. No registration fee, no monthly subscription, no minimum, no exit fee, no hidden charges.
Zero monthly admin
No bookkeeping, no VAT filings, no annual report. The filings and the payments to the authorities are handled for you.
Payslip and money, fast
Once your client approves and pays, you get a payslip and the money reaches your bank · no chasing paperwork.
Rights of a salaried worker
The engagement runs under Israeli labour law by a licensed employer · National Insurance and pension are handled as part of it.
Foreign clients welcome
Invoice a client abroad in a foreign currency. Export of services can qualify for zero-rated VAT, subject to the conditions in the law.
One-off or ongoing
Works for a single gig, an occasional client, or steady monthly work · with no commitment either way.
From registration to payslip · step by step
Registration takes a few minutes. Once you are set up, issuing an invoice for a new job is a single action · there is nothing to repeat.
Register online
Fill in your details in the online form · ID, bank account and contact details. No file to open, no visit to an office, nothing to sign in person.
Enter the job
Tell NETO who the client is, what the work is and the agreed amount · in shekels or any foreign currency for an overseas client.
NETO invoices the client
NETO issues a lawful tax invoice under its own registration and sends it to the client. VAT is added on top at the statutory rate.
You get paid · with a payslip
Once the client pays, NETO runs the payroll, withholds tax and National Insurance, files the returns, and transfers your salary with a full payslip.
What to have ready
- ID number and personal details
- Bank account for the salary transfer
- The client's details and the agreed amount
- Form 101 details if you have another job
Have a second job already? That is common and it is handled · the tax treatment of a second income has its own rules, and the tax on a second income guide explains how the withholding works so you are not over- or under-taxed.
Only need this once? See how to issue a one-time invoice · the same model, with nothing left running afterwards.
How this plays out in practice
Three situations that come up constantly · click to open the full detail. The examples are illustrative only.
A developer in Tel Aviv lands a US client
A developer is offered a three-month contract by a company in California, paid in dollars. The client's finance team needs an invoice to process the payment · a PayPal request will not clear their books. Opening an Osek file for one contract means registration, an accountant, an annual return, and then closing it again when the contract ends.
Through NETO: the developer registers online, NETO issues a USD invoice to the US client under its own registration, and once payment arrives the developer receives a salary with a payslip. Income tax and National Insurance are withheld and reported. When the contract ends, there is nothing to close.
A new immigrant takes their first paid work
Someone who moved to Israel recently picks up consulting work while still finding their footing · the language is new, the tax system is unfamiliar, and the idea of registering as a dealer with the Tax Authority and VAT in a language they are still learning is daunting.
The employee-invoice model removes that entirely: the client gets a valid invoice, the authorities get a proper report, and the new immigrant gets a payslip in a structure they can actually read · while National Insurance entitlement starts accruing in the salaried track from the first payment. There is a dedicated guide for invoicing without a business as a new immigrant.
A salaried employee with a side project
A full-time employee does occasional design work in the evenings · a few thousand shekels a month, not every month. Opening a second tax file alongside a salaried job means a return, books and an accountant, for income that is real but modest and irregular.
Through NETO the side income is invoiced and reported as salaried income. Because a second income is taxed differently from the first, the withholding is set accordingly · see tax on a second income. In quiet months, nothing happens and nothing is owed.
The pattern in all three
- The income is real but irregular · a file would cost more than it returns.
- The client needs a valid invoice, not a workaround.
- Nobody wants an open file to wind down afterwards.
How it actually works · in two minutes
Want to issue an invoice without opening a business? Here is the whole model, start to finish.
Invoicing without opening a business · your questions
Is it legal to invoice through NETO without opening a business?
Yes. NETO is a licensed manpower contractor · registered Manpower Contractor Licence no. 1565 from the Ministry of Labor · and acts as your official employer. It issues the invoice to your client under its own registration, and everything is reported to Income Tax, National Insurance and VAT by NETO. You are a salaried employee, which is a well-established and fully lawful employment structure in Israel.
Do I get social benefits and employee rights?
Yes. Working through NETO you are defined as a salaried employee, so pension, sick days, annual leave and severance provisions apply as Israeli labour law requires · subject to the terms and duration of the engagement. This is the substantive difference from an Osek Patur, who is not entitled to any of these.
How much does the service cost?
NETO's fee is 5%, derived from the invoice the client pays, before VAT. It covers everything: issuing the invoice, running the payroll, withholding and filing with the authorities, and producing your payslip. There is no setup fee, no monthly minimum and no separate accountant retainer.
What makes NETO different from other invoice services?
Two things, and they are checkable. First, NETO holds a registered manpower contractor licence · no. 1565 · and deposits the bank guarantees the law requires against workers' wages. Second, NETO registers you with all the authorities, including National Insurance. Where a service only issues an invoice without that registration, entitlement may not be accruing in the salaried track at all · which matters the day you claim sick pay, maternity or unemployment. Ask any provider for its licence number and check it in the public registry.
Can I invoice clients outside Israel?
Yes. NETO issues invoices to Israeli and international clients alike. For an overseas client the invoice can be issued in USD, EUR or another currency, in a format their finance team can process and file.
Is there a minimum or a maximum I can invoice?
There is no income ceiling · unlike an Osek Patur, which suits turnover up to roughly 120,000 ILS a year (confirm the current figure with the Israel Tax Authority). The model works equally for a single small job and for ongoing monthly income. If nothing comes in one month, nothing is charged.
Do I need to file an annual tax return?
Not for this income · NETO withholds tax at source and files the returns as your employer, exactly as any employer does. Bear in mind that an obligation to file can still arise from your own circumstances · other income, certain asset holdings, or income above the statutory thresholds. If you are unsure, check with an accountant or tax adviser.
What about VAT · do I charge it?
You do not deal with VAT at all. NETO issues the invoice under its own VAT registration and adds VAT at the statutory rate · currently 18% in Israel · on top of the agreed amount. The client pays it, NETO reports it. It is not a cost to you, and it does not come out of your fee.
I already have a job. Can I still use this?
Yes · this is one of the most common uses. Income from a second employer is taxed differently from your main salary, so the withholding is set accordingly using your Form 101 details. See the guide to tax on a second income for how that works in practice.
What happens if I stop, or want to open a business later?
Nothing to close and nothing to cancel · if no work comes through, the account simply sits idle at no cost. And if the income grows to the point where a business makes sense, you can open one whenever you choose. Many people use the employee-invoice route precisely as the low-risk way to find out whether the income is durable before committing to a file.
How fast can I get an invoice out?
Registration takes a few minutes online. Once you are set up and the job details are in, the invoice can be issued to the client · and for every job after that, there is nothing to set up again.
Is there a minimum or maximum invoice amount?
Yes · an invoice can be issued from a gross pay of ILS 400 and above. On the other hand, there is no maximum-amount limit. For higher volumes · monthly pay above ILS 20,000 · you can ask about a reduced commission, subject to the sales team's discretion.
Summary and recommendations
You can invoice a client in Israel without opening an Osek file · lawfully, and without a workaround. The employee-invoice model through a licensed manpower contractor gives your client a valid tax invoice and gives you a salary with a payslip. NETO registers you with Income Tax, National Insurance and VAT, withholds and files what the law requires, and charges 5% derived from the invoice the client pays, before VAT. You get employee rights · pension, sick days, leave and severance provisions · subject to the terms of the engagement, with no bookkeeping, no annual return for this income, and no accountant.
If you are choosing a provider, make the licence the deciding question. NETO holds registered Manpower Contractor Licence no. 1565, deposits the bank guarantees the law requires against workers' wages, and is supervised by the Ministry of Labor · all publicly verifiable against company number 515486058. It suits freelancers, consultants, developers, new immigrants and anyone earning on the side who wants the work without the business.
General information · not advice: this page is for enrichment only and is not legal, accounting or tax advice. Rates, thresholds and entitlement conditions change · verify current figures with the authorities and consult a lawyer, accountant or tax adviser as needed.
More reading you may find useful
Disclaimer: the information on this page is general information for enrichment only and should not be regarded as legal, accounting or tax advice, nor as a substitute for it. Tax rates, National Insurance rates, the Osek Patur turnover ceiling and entitlement conditions are updated from time to time · verify current figures directly with the Israel Tax Authority and the National Insurance Institute. Entitlement to employee rights depends on the terms and duration of the engagement and on Israeli labour law. Consult a lawyer, accountant or tax adviser as needed.
Ready to invoice?
Get paid for the work · skip the business
Register in a few minutes and NETO takes it from there · a lawful invoice to your client, all three authorities handled, and a salary with a payslip in your account. Under Ministry of Labor supervision, holding Manpower Licence 1565.
