What is the difference between osek patur and osek murshe in Israel?

Both terms describe self-employed status under Israeli VAT law. An osek patur has annual turnover below approximately 107,000 NIS in 2026 and is exempt from charging VAT, but cannot reclaim VAT on business expenses. An osek murshe charges 18% VAT on invoices and files periodic VAT returns but can offset VAT paid on inputs. Certain professionals — lawyers, accountants, engineers, financial consultants — must register as osek murshe regardless of turnover under Regulation 6A of the VAT Regulations. Once turnover exceeds the threshold, upgrading from patur to murshe is mandatory within 30 days.