Key Points
- You can issue a legal tax invoice without opening a VAT-registered or exempt business
- The model is based on an employer-employee relationship: NETO is your legal employer for tax purposes
- Your client receives a proper tax invoice; you receive a payslip and net payment to your bank account
- Suitable for one-time jobs, multiple projects, and invoices to overseas clients (0% VAT)
- 5% commission only – no subscription fees, no accountant, no bureaucracy
- NETO operates under staffing agency license #1565 from Israel’s Ministry of Labor
Table of Contents
Issue Invoice Without Opening a Business – Legal Freelance Billing in Israel
Got a client who needs a tax invoice, but the thought of registering a VAT file stops you? NETO lets freelancers and employees with side income issue legal invoices, get an official payslip, and receive net payment to their bank account – with zero bureaucracy.
5%
Commission Only
#1565
Staffing License
$0
Subscription Fee
0%
VAT for Overseas Clients
What Is the “Invoice as Employee” Model?
The “Invoice as Employee” model (also called Freelancer as Employee) is a legal solution based on an employer-employee relationship between you and NETO. Instead of opening a business file – NETO acts as your legal employer for tax purposes.
In practice: your client receives a tax invoice from NETO, the money comes to us, and we transfer you a net payment to your bank account together with an official payslip – after all legally required taxes have been deducted.
No accountant needed. No annual reports. No VAT headaches. We handle the entire tax side, and you focus on your work.
What You Get
- ✅ Legal tax invoice for your client
- ✅ Official monthly payslip
- ✅ Net payment to your bank account
- ✅ Automatic pension contributions
- ✅ National Insurance & income tax handled
- ✅ No business file required
How Does It Work? (60 Seconds)
4 Simple Steps to Issue Your Invoice
- One-time registration: Fill in your details and a digital tax form – 5 minutes.
- Enter transaction details: Client name, amount, service description and date.
- Automatic invoice issued: NETO sends a tax invoice to your client on your behalf.
- Receive net payment: Once your client pays, the money is transferred to your account minus taxes + payslip.
Ready to Issue Your First Invoice?
Free registration – get started in 5 minutes
Why Choose NETO for Freelance Invoicing?
Zero Bureaucracy – Literally None
No VAT file, no income tax file. No annual reports, no advance payments, no declarations. NETO is your formal employer for tax purposes – all reporting is handled by us.
Fully Legal & Regulated
NETO is a licensed staffing agency from Israel’s Ministry of Labor (license #1565). Your money is protected by bank guarantees. Every transaction is legally reported.
Transparent, Variable Costs
A flat 5% commission on the transaction. No invoice this month? You pay nothing. No subscription fees, no surprises.
What’s Included?
- 📋 Tax invoice to your client
- 🧾 Monthly payslip
- 🏛️ Reporting to Tax Authority
- 🏥 National Insurance & Health
- 💰 Pension contributions
- 💼 Social insurance
- 📞 Professional support
Invoicing International Clients – 0% VAT
Working with companies in the US, Europe or elsewhere? Through NETO you can issue invoices in foreign currency (USD/EUR) to overseas business clients with 0% VAT under Section 30 of Israel’s VAT Law. This means:
- Save your overseas client 17% in costs
- A significant competitive advantage
- International payments in a legal, organized manner
Technical Details
- 💱 $USD, €EUR, £GBP & more
- 📄 Invoice with 0% VAT (Sec. 30)
- 🔄 Converted to ILS at bank rates
- ✅ Suitable for companies & individuals
Full Transparency – How Much Do You Keep Net?
At NETO, everything is transparent. The money received from your client (gross) covers legally required taxes, with the remainder transferred to you:
| Component | Who Pays | Notes | NETO Handles? |
|---|---|---|---|
| National Insurance + Health | Employee + Employer | Based on income | ✓ Yes |
| Income Tax | Employee | Per tax brackets + credit points | ✓ Yes |
| Pension Contributions | Employee + Employer | To your personal pension fund | ✓ Yes |
| NETO Commission | Employee | 5% of transaction | ✓ Yes |
| Your Net Payment | — | Transferred to your bank account | ✓ Yes |
Comparison: Independent Freelancer vs. NETO
| Parameter | Self-Employed Freelancer | Invoice via NETO |
|---|---|---|
| Open a business file | Required (VAT + Income Tax) | ✓ Not required |
| Annual tax reports | Mandatory | ✓ NETO handles it |
| Monthly advance tax payments | Mandatory | ✓ Not required |
| Accountant | Recommended / Required | ✓ Not required |
| Setup cost | Time + fees | ✓ Free |
| Pension contributions | Your responsibility | ✓ Automatic |
| 0% VAT invoice for overseas | Requires tax expertise | ✓ Built into the system |
| Official payslip | Not available | ✓ Yes, every month |
Frequently Asked Questions
Yes, completely legal. NETO acts as your legal employer (staffing agency license #1565). Your client gets an invoice from NETO and you receive a salary. Everything is reported to the authorities in accordance with the law.
Absolutely. No minimum commitment period. No subscription fees. You pay only 5% commission on transactions you actually make – ideal for one-off projects and side income.
NETO enables issuing invoices in foreign currency (USD/EUR). Invoices to overseas businesses are typically issued with 0% VAT under Section 30 – saving your client 17% and increasing your competitiveness.
Only if you’re also an employee at another job with two income sources. If you’re a freelancer only, it’s generally not needed. NETO’s team will guide you.
About 5 minutes. Fill in your personal details and a digital tax form. After approval (usually within a few hours) you can immediately issue invoices through NETO.
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