Israeli invoices often combine NIS rates, VAT status, and current-plus terms. Everhour keeps the underlying time records organized.
Track billable vs. non-billable time and see your real utilization rate and revenue potential in seconds.
Working hours in the period
Admin, meetings, internal work
Industry average is 75–80%
The calculator gives you the number — Everhour takes it from there.
One click and you're timing. Start a timer, add an entry, edit the details. This is exactly how it feels in Everhour.
Set a budget, assign rates, and get alerted before you're over.
Measurement
Track your budget through time or costs
Every report you need — configured your way, always up to date.
Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.
A billable-hours calculation converts approved work time into the amount a client should be charged. In Israel, that usually means multiplying billable hours by agreed rates in New Israeli shekels, then deciding whether VAT applies. The result can be a pre-VAT labor amount, a VAT amount, and a total invoice amount.
The calculation matters before sending an invoice, checking a retainer drawdown, reviewing a write-down, or comparing billed value with actual work performed. It does not decide whether a task is billable by itself. That still comes from the engagement letter, purchase order, project scope, or client approval rules.
Start with each approved billing line: hours, rate, and billing category. For example, an Israeli advisory project includes 28 approved consulting hours at NIS 360 per hour and 9 approved review hours at NIS 240 per hour. The pre-VAT labor value is NIS 12,240. If the supplier is a taxable authorized dealer and no exemption or zero-rate rule applies, 18% VAT adds NIS 2,203.20.
That makes the invoice total NIS 14,443.20. The 18% rate applies to taxable transactions whose tax point is on or after January 1, 2025. Eligible exempt dealers do not collect regular VAT, but a small business can apply for VAT-exempt dealer status only if expected annual turnover does not exceed NIS 122,833 in 2026 and the business is otherwise eligible.
Israel does not set a statutory national billing increment for professional time. A 6-minute, 15-minute, half-hour, or exact-minute rule is a contract, profession, or firm-level setting. Pick the increment before calculating the invoice, because rounding each entry can produce a different total than rounding only the final monthly hours.
VAT status is a separate decision from the time calculation. Businesses listed in VAT Registration Regulation 13, including liberal professions such as lawyers and accountants, must open an authorized dealer file rather than an exempt dealer file. For tax invoices issued to authorized-dealer customers in 2026, the invoice allocation number threshold is NIS 10,000 pre-VAT from January 1 and NIS 5,000 from June 1.
A one-off calculation is enough when you have a small number of approved hours, one rate, and a clear VAT treatment. It also works for a quick quote check or a single freelance invoice where the billing increment and payment term are already written into the agreement.
A managed workflow is better when several people track time across tasks, projects, or client tools. Everhour can place tracking controls inside supported project management tools, sync project and task metadata, and keep timesheets and budgets visible in those workflows. That gives the billing handoff a cleaner source of hours before invoices move to accounting.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
High Performer
G2
Summer 2026
Best Ease Of Use
Capterra
Summer 2026
Rated in the top time trackers across G2, Capterra, and TrustRadius — with consistent praise for ease of use, integrations, and support.
The main inputs are approved billable hours, agreed hourly rates in NIS, the billing increment, write-downs, and VAT status. The time calculation gives the pre-VAT amount. VAT is added only when the supplier is a taxable authorized dealer and the service is taxable, unless a specific exemption or zero-rate rule applies.
Israel's standard VAT rate is 18% for taxable transactions whose tax point is on or after January 1, 2025. Billable professional time is generally VATable when performed by a dealer in the course of business, unless a specific exemption or zero-rate rule applies. Eligible exempt dealers fall outside regular VAT collection.
No statutory national increment sets a universal 6-minute, 15-minute, or other billing unit for professional time in Israel. The increment comes from the contract, profession, client policy, or firm practice. Apply the same chosen rule consistently before multiplying hours by rates.
Current-plus terms count from the end of the month in which the payment request was sent. Business-sector customers are expected to pay suppliers by current plus 45 days unless the parties expressly agreed to a different payment date. Government and public bodies use current plus 30 days, while local authorities use current plus 45 days.
The common mistake is mixing time math with tax status. Hours and rates create the pre-VAT labor amount. VAT status then determines whether 18% VAT is added. A second common mismatch comes from changing the rounding unit after review, because entry-level rounding and month-end rounding can produce different billable totals.
Everhour embeds tracking controls inside supported tools such as Asana, ClickUp, GitHub, Linear, Jira, Monday, Notion, Trello, and Basecamp, then syncs project and task metadata into one reporting layer. Invoices can also be exported to QuickBooks Online, Xero, or FreshBooks as drafts.
Track approved hours where work happens, keep project context attached, and move clean invoice data through Everhour's integrations for a steadier billing handoff.
14-day free trial · No credit card · Cancel anytime
