Couriers and delivery riders, the business side
Working as a courier for a platform looks like employment from the outside and runs as a business from the inside. There is no payslip, no automatic tax withholding, and nobody setting anything aside. All of that lands on the courier, and in most cases it surfaces for the first time at year end.
- Open the filesTax Authority and Bituach Leumi, before you start working
- Documents for the platformAn invoice or receipt for every payment received
- Record expensesFuel, maintenance, insurance, phone
- Set money asideFor income tax and national insurance, every month
Which status to open
In most cases osek patur, as long as annual turnover stays under the ceiling, which stands at 122,833 shekels in 2026.
That number is easy to cross. A courier working full time can reach it, so it is worth tracking cumulative turnover rather than discovering the crossing after the fact. The osek patur threshold calculator does the check.
Anyone who crosses moves to osek murshe, starts charging VAT, and in exchange gains the right to deduct input VAT on expenses. For a courier with heavy fuel and maintenance costs, that is not necessarily bad news.
The opening process itself is described in the opening an osek patur guide.
Which documents to issue
The platform pays, so it needs a document. An osek patur issues a receipt for every payment received, and a transaction invoice where the transaction needs recording before payment. An osek murshe issues a tax invoice.
Some platforms produce a self-billed document in the courier's name. Even then responsibility for the correctness of the record stays with the courier, and it is worth confirming that documents issued in your name match what is in your books.
Which expenses are recognized
This is the part that returns the most money, and most couriers do not use it.
Fuel, maintenance and servicing. The main cost. For most self-employed people it is partially recognized, around 45%, on the assumption that the vehicle or motorcycle also serves private use. The full detail, including the difference between the income tax and VAT calculations, is in the vehicle expenses guide.
Compulsory and third-party insurance. Falls into the same running-cost category.
Phone and internet. A genuine work tool here rather than an accessory. Recognized at a relatively high rate, around 80%.
Equipment. Delivery bag, helmet, charger, phone mount, dedicated clothing. Equipment is recognized in full.
Platform commission. If the platform deducts a commission from the payment, the income is the gross amount and the commission is an expense. Recording only the net that reached the bank is a misstatement that creates a gap against the reported figures.
Motorcycles and scooters
Anyone working on a motorcycle should check its classification for input VAT deduction at purchase, because the rules follow the definitions in the regulations rather than the use. That is a check worth doing before buying rather than after.
Running costs, in any case, fall under the same vehicle expense rules.
National insurance, and the most important point here
A courier injured in an accident while working relies on work-injury insurance. That cover exists only for someone Bituach Leumi recognizes as a self-employed worker, meaning someone who meets one of the definition tests: 20 hours a week on average, or monthly income at or above 50% of the average wage, or 12 hours a week together with income at or above 15% of the average wage.
Someone working limited part-time hours may meet none of them, and find that out at the worst possible moment. The check takes seconds in the national insurance calculator, and the full explanation is in the national insurance guide.
On the road, this is not a theoretical question.
Income tax and advances
There is no withholding, so nobody is setting anything aside. Anyone who does not do it themselves reaches year end with a bill.
A self-employed person on the regular track pays income tax advances as a percentage of turnover. Anyone with low enough turnover to fit the micro-business track is exempt from advances and receives a 30% normative deduction instead of actual expenses.
There is a surprise here worth knowing. Motorcycle and vehicle costs look large, but they are only partly recognized, so a courier's recognized expenses usually land under 30% of turnover. In that case the normative track is actually better. The worked example below shows it in numbers, and either way it is worth calculating before choosing.
When you are also an employee
This is the most common situation in the sector: a part-time or full-time job, plus deliveries in the evenings and at weekends.
For income tax the two income sources combine. Salary has already had tax deducted through the payslip, and delivery income sits on top of it and sets the marginal bracket. Anyone who did not file a tax coordination may find in the annual return that the tax on delivery income is higher than expected, because it stacks above the salary rather than starting from the bottom bracket.
For national insurance both sources count together against the ceiling. Someone whose salary is already high may pay less on the delivery income, and sometimes nothing. Anyone paying from both sources and crossing the ceiling is owed a refund, which is worth checking once a year.
What does not change: the obligation to open a file and issue documents for delivery income applies even with a full-time job elsewhere. A salary does not replace a business file.
What it looks like on ₪96,000 of turnover
A courier on a motorcycle, annual turnover of 96,000 shekels from the platform, before commission is deducted.
Expenses: fuel 9,600 shekels, insurance 4,200, servicing and repairs 3,600, the recognized share of the phone 1,150, equipment (helmet, bag, chargers) 1,400, and platform commission 9,600.
Platform commission is recognized in full. The motorcycle costs are partly recognized, around 45% of 17,400 shekels, so roughly 7,830. Together with the phone and equipment, recognized expenses come to about 19,980 shekels, and taxable income to about 76,000.
For comparison, the micro-business track would give a normative deduction of 28,800 shekels. Here the normative track comes out ahead, which is exactly why you calculate rather than guess.
What is worth doing every month
Record gross income from the platform, not the amount that reached the bank.
Photograph every fill-up and every service on the day, not at month end.
Check cumulative turnover against the ceiling.
Set a fixed percentage aside for tax and national insurance.
How Slate works from your phone
Scanning a receipt in Slate produces a draft expense ready for approval, so a fill-up is recorded in real time from the phone instead of piling up in the glovebox. Income accumulates against the osek patur ceiling, and expenses are classified with their recognition rates, so year end brings a complete picture without reconstructing months backwards.
This is general information, not tax advice. For a specific situation, talk to an accountant or tax adviser.
Common questions
Should a courier register as an osek patur or osek murshe?
Most couriers start as an osek patur while annual turnover stays under the ceiling. Anyone working mainly for companies that reclaim VAT anyway, or expecting to cross the ceiling, is better off registering as an osek murshe from the start.
Which expenses are deductible for a courier?
Fuel or charging, insurance, the annual vehicle test, servicing, riding gear and delivery bags, the business share of phone and internet, and platform commissions. On a private vehicle the recognized share of running costs is 45%.
Is a motorcycle treated differently from a car?
Yes. A two-wheeler in certain licensing groups gets more favorable treatment than a private car, sometimes with a higher recognized share. Check the licensing group of the vehicle.
Do National Insurance contributions apply to small courier income?
Yes. Business income triggers advances based on taxable income, even modest income, subject to the minimum. It is also what determines work-injury cover, which matters especially for riders.
Working through an app, who issues the invoice?
The courier issues an invoice to the company or platform, depending on the engagement. A commission the platform takes does not reduce the income you report; it is recorded separately as an expense.
What if I am also employed?
You need both a tax coordination and a National Insurance contributions coordination, otherwise the employer withholds at brackets that are too low and the gap arrives with the annual return.