How to Issue an Invoice for a Foreign Client Without VAT
Are you an Israeli worker providing services to an overseas company? NETO lets you issue a legal, VAT-exempt invoice to your foreign client in 5 minutes – no business registration required, fully legal, licensed staffing company #1565.
When Issuing a Foreign Client Invoice — Is VAT Charged?
Under Israeli tax law, every invoice issued in Israel is subject to 18% VAT — unless the work was done by an Israeli resident for a foreign client with no branch and not registered with Israeli tax authorities. In that case: 0% VAT may apply — subject to specific conditions under Israeli VAT Law. Please note: Zero-rate VAT (0% VAT) is permitted only under very specific circumstances defined in Israeli VAT Law, and is not automatic. Each case must be individually assessed based on the exact legal conditions, the nature of the service, and the client’s legal status. Compliance with all requirements is the full responsibility of the service provider.
⚠️ Disclaimer: The information on this page is general in nature and does not constitute legal or tax advice. The applicability of 0% VAT depends on complex legal requirements under Israeli VAT Law. Each case must be assessed separately with a licensed tax attorney or CPA. Do not issue 0% VAT invoices without specific professional guidance.
How to Issue a Foreign Client Invoice in 5 Minutes
Anyone can work through NETO for a foreign client as staffing / outsourcing. After agreement, the system issues an invoice to the client in English and VAT-exempt, and after work is completed, transfers payment to you as a payslip.
- Register as a NETO freelancer – it's free
- Fill in Form 101 (optional: tax coordination in the system at no cost)
- Issue the invoice – enter client details, transaction details, and invoice amount
- Receive a salary simulation – see gross, deductions, and net amount
- Confirm – invoice is sent to client automatically in English
▶ Watch: How to Issue an Invoice via NETO (Tutorial)
Transparent Pricing — Only 5%
No hidden fees. No monthly subscription. Pay only when you get paid.
Service Fee
💡 Example: $1,000 Invoice
Invoice: $1,000
NETO fee (5%): $50
You receive: $950
💡 Example: $5,000 Invoice
Invoice: $5,000
NETO fee (5%): $250
You receive: $4,750
What People Think About NETO
"Issued my first invoice to a US client in 5 minutes. No accountant, fully legal."
Barak Barkai
"As a designer working with European clients, NETO solved my invoicing problem. The 5% fee is worth every cent."
Romi Oren
"I get a payslip, pension contributions, and employee rights — while working for my German client."
Yuval Adani
"The tax simulator showed me exactly what I'd earn — I confirmed and the invoice was sent to my client instantly."
Eliav T.
Frequently Asked Questions
Can I issue a foreign client invoice without opening a business file?
Yes. NETO acts as a licensed staffing company (License #1565) and issues the invoice on your behalf. No need to register as a freelancer (עוסק מורשה).
Is it 100% legal?
Absolutely. NETO operates under Israeli labor law with full regulatory compliance. License #1565 allows employing workers in Israel.
How much does NETO charge?
Just 5% of the invoice amount. On a ₪1,000 invoice — the fee is ₪50. No hidden costs, no monthly fees.
What currencies are supported?
USD, EUR, GBP and other major currencies. The invoice is issued in English automatically.
What social benefits do I receive?
Full employee rights: pension, health, vacation pay — all via the payslip you receive after the client pays NETO.
Ready to Invoice Your Foreign Client?
Join thousands of Israeli freelancers who invoice global clients legally — 0% VAT, 5% fee, ready in 5 minutes. No LLC needed. NETO is a licensed staffing company (license #1565) doing it all for you.
🔒 Secure · No registration fee · Licensed company · Cancel anytime
