Opening an independent business in Israel requires registering with three authorities. A “Patur” (Exempt) dealer is a type of small business that allows an individual to report their income from self-employment to the tax authorities (Income Tax, VAT, and National Insurance). A Patur business can only be registered for one person—it cannot be jointly owned. The term “exempt” in “osek patur” (exempt dealer) refers to exemption from charging VAT (Value Added Tax). Every transaction in Israel is generally subject to VAT, but exempt dealers are not required to collect VAT from their clients—provided they meet specific criteria such as staying below a certain annual income threshold...