Osek patur vs osek murshe: what is the difference?
The main distinction is VAT registration. An osek patur generally does not charge VAT to customers and cannot deduct input VAT, while an osek murshe generally charges VAT and may deduct eligible input VAT. Both can still have income-tax and National Insurance obligations.
“Patur” means exempt from collecting VAT in the relevant framework—not exempt from income tax or National Insurance.
2026 comparison
| Question | Osek patur | Osek murshe |
|---|---|---|
| 2026 turnover eligibility | Expected annual turnover generally must not exceed ₪122,833 and the profession must be eligible. | No osek-patur turnover ceiling. |
| VAT charged to customers | Generally no | Generally yes |
| Input VAT deduction | Generally no | Potentially, on eligible business expenses |
| Income tax | May apply | May apply |
| National Insurance | May apply | May apply |
When osek patur may not be available
The Israel Tax Authority states that certain professions listed under Regulation 13 must register as an osek murshe even when turnover is below the threshold. Examples given by the authority include lawyers and accountants.
Do not confuse it with “micro-business owner”
The income-tax “micro-business owner” track can apply to an eligible osek patur or osek murshe whose annual turnover is within the statutory limit and who meets additional conditions. It is a separate classification from VAT registration.
Official sources: