Osek Patur Ceiling Calculator
Crossing the osek patur ceiling doesn't announce itself — and the moment it happens you must register as an authorized dealer and start charging VAT. Enter your revenue since January and see how much room is left, and what happens if you keep the same pace through December. The choice only exists before you cross.
Where you stand against the ceiling
The ceiling is measured on revenue invoiced during the calendar year, not cash collected.
Total invoiced since January 1, excluding VAT.
At your pace so far
An osek patur charges no VAT and deducts no input VAT. Crossing the ceiling requires registering as an osek murshe — that's a legal obligation, not a choice.
The ceiling is updated annually and published by the Tax Authority. This calculation is an estimate based on what you entered and is not tax advice — consult an accountant before changing your registration status.
How it works
- •The ceiling measures what you invoiced, not what you collected. An invoice issued in November and paid in February counts in the year it was issued. You can cross while the bank account still looks calm.
- •The ceiling is updated every year. It's index-linked and republished each January, so last year's figure is not this year's.
- •Crossing is an obligation, not a choice. From the moment you cross you must register as an authorized dealer and charge VAT. The longer it takes, the more VAT you'll owe out of pocket on business already done.
- •An authorized dealer also deducts. The switch isn't all downside: an authorized dealer deducts input VAT on business expenses, which an osek patur cannot do at all.
Frequently asked questions
What happens if I cross the osek patur ceiling?
You must register as an authorized dealer for VAT and start charging it. If the crossing is discovered late, you may be required to remit VAT on transactions already completed — even if you never collected it from clients. The earlier you spot it, the smaller the damage.
Is the ceiling measured on revenue or on profit?
On turnover — total revenue invoiced in the calendar year, before deducting expenses. A business with high expenses and thin profit can cross the ceiling while its actual earnings are modest.
When is it worth switching to authorized dealer voluntarily?
When you have meaningful business expenses that carry VAT — equipment, rent, subcontractors — the input VAT deduction can outweigh the downside of charging VAT to clients. That's especially true when your clients are businesses, who deduct the VAT you charge and therefore don't experience it as a price increase.
What's the difference between osek patur and osek zair?
Osek patur is a VAT status: you don't charge VAT and don't deduct it. Osek zair is an income-tax track for low-turnover businesses, granting an automatic expense deduction and relief from some filing duties. They're separate things — you can check whether the second is worth it in the osek zair calculator.
Does an osek patur file an annual return?
An osek patur doesn't file periodic VAT returns, but does submit an annual declaration of turnover to VAT, plus an annual income tax return and National Insurance reporting like any self-employed person. The exemption is from VAT, not from income tax.
Want a warning before you cross?
Quickly tracks your turnover through the year and sends a WhatsApp alert as you approach the ceiling — while there's still time to plan. 14-day free trial.
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