Step 2 – register with VAT

Being a freelancer entails purchasing equipment - in my case a really strong laptop and software. But in order to get back the VAT I needed to register myself as self-employed with the VAT office. This was my first priority as I knew that I needed the laptop as soon as possible.

The first job was finding which office I belonged to – finally achieved. I downloaded the VAT form and saw that I didn’t understand anything! So I phoned them up and asked what I needed to bring and when I could come. Lucky I did, because the lady asked if I had a joint account with my husband. If so, he needed to come with me and sign that he agreed to VAT being deducted from our joint account.

So that was nice – quality time with Shaul on the way there and while waiting our turn. (Even nicer was that he found parking and not me in the busy part of Tel Aviv (with no convenient buses) where the VAT office is located.)

Finally, it was our turn and we sat in a cramped office with a lady who didn’t know where anything was because it wasn’t her office. Whoever’s office it was, they liked travelling and we saw good photos of Tibet on the wall.

I explained that I was setting up the business this month, but would only start working next month. She helped me fill in the form, and asked me what my annual expected income would be. Ah – if only I knew. Obviously it depends on the work I find, but what she really meant was would I earn more than NIS 73,300 (about $20k or £12,200) a year. If so I could register as a business that charges VAT and I can also claim back any VAT I paid.

She also wanted to know what I would be doing – I told her product design and technical writing – but she understood technical writing (not the only one who has no idea (or is confused) about product design/product management/business analysis, etc.,) and so that was registered as the major item.

I walked out of there as the proud owner of a certificate saying that I was authorized to charge VAT. Not only that, I took the parking ticket and registered it as a recognized expense with a VAT component – I learn fast.