Freelancers in Israel: Invoice solutions without registering as self-employed

Freelancers in Israel often face a bureaucratic challenge: issuing a legal tax invoice without having to register as self-employed with the Tax Authority, VAT, and National Insurance. For those who only have a few projects a year, or who are just getting started, opening a full tax file is often unnecessary and complicated.

The Problem

To issue a standard invoice in Israel, you need to:

• Register as a business with the Tax Authority.

• Open a VAT file (either exempt or registered).

• Report income and pay advances to National Insurance.

For a freelancer who just wants to issue an invoice quickly and legally, this is too much.

The Solution: Independent Employee (עצמאי שכיר בע״מ)

Independent Employee Ltd. provides freelancers with a simple way out:

• You issue a tax invoice through the company.

• You get a payslip at the end of the process.

• All reporting to authorities is handled on your behalf.

This model combines the benefits of being a freelancer (flexibility, project-based work) with the security of receiving a payslip and working legally.