 Hey guys, welcome back to my YouTube channel. This is Daniel Rose celebrating you today's video from Jerusalem in Israel after being on the road for a little bit this summer. It's really great to be back here. I've had a couple of friends ask me over the past few months if I would record a video about how to make money through YouTube if you are based in Israel. So the YouTube account I'm putting this up on is a monetized YouTube account, which means that it does earn me money. I can say it's bringing in a vast fortune and it's certainly not why I started this YouTube channel, but of course in a place as expensive as Israel, every bit helps. And it is kind of satisfying to eat pizza and beer a few times a month knowing that all that money has come through AdSense earnings from these videos and putting up on YouTube. So I want to talk a little bit just about how that works from an Israeli perspective and how that works generally. So the first thing you're going to need to earn money through YouTube is not Israel specific. So I won't go into it in any detail. And that's having a monetized YouTube account. So YouTube or Google really has a threshold once your YouTube channel crosses that threshold and it's based on subscribers at least 1000 and a specific number of watch errors, you're then eligible to apply for the YouTube partner program and begin monetizing your videos. So I won't talk about these requirements in any detail because they're not specific to Israel. And I want to talk about the Israel specific stuff in this video. The Israel specific stuff is that if you begin earning money through YouTube, you're going to need to report it to the Israeli tax authorities. And that means basically you're going to need to be registered as a business in some manner. You can be what's called an Atsma E and that's my E is an independent business structure, non-incorporated. There are two forms in Israel. One is a Osek patour. If your earnings are kind of low and that is a vast exempt sole trader business type. And then you have an Osek Moshe, which when you pass over a certain revenue threshold, you by law have to upgrade to Osek Moshe and at the Osek Moshe level, you need to charge VAT to Israeli customers. That's a bit of a simplification, but that's the most part of it. Then you also have the Ba'am, which is a limited or incorporated business. But basically if you're just doing YouTube videos and that's like your site hustle or your site income, you're going to be one to be one of the two types of an Atsma E, an Osek patour or an Osek Moshe. Now, this wasn't so hard for me because since 2016, there are bouts. I've had a tick, a file with the tax authority doing sometimes full time, sometimes side projects as an independent contractor. So getting started administratively for me was really, really easy. But you know, people might say, well, YouTube is not based in Israel. So do you need to report that for tax authorities? And the answer is definitely yes. If you are an Israeli tax resident, by which basically means you spend the majority of your year in Israel, whenever you earn money, whether you earn money from someone in the country or someone outside of the country, that income gets collected and reported in your tax return. And you pay tax on that. So basically the relatively modest amount of money I earn through YouTube gets added to everything else I do and gets sent in on my tax and VAT forms I send in every two months. And I pay tax on that YouTube earning to the Israeli tax authority. Now, if you're wondering how that process works, if you're already set up as an Atsma E in Israel, and you're like, well, how do I report that? It's really simple. Basically, you get paid from AdSense, when you earn money through YouTube, you get you get paid through AdSense. There, I believe he actually HQed in Ireland, but it's just a Google subsidiary. And you need to basically just add that as a company in your accounting detail. And whenever you get a payment from AdSense, you need to create a responit mass cabela for the exact amount in your accounting system. So green invoice is super popular. But there are other ones in the marketplace as well. There is probably some way to do this automatically through, you know, an API. But if you're only getting paid a few times a year from Google, it's pretty easy to do this manually, just every time you get that notification email from Google saying you've been paid through AdSense, then you need to go and create a corresponding piece of paper in your accounting system was the exact same payment amount that Google put on your bank account was the exact same payment date. And then that will get added into the reports being generated in your Israeli accounting system. That's pretty much all there is to know, but I'm going to actually end the video with one kind of pro tip, if you will. And that's basically in Google AdSense, you're able to change the payment threshold. The payment threshold is how much money you need to accrue in your AdSense earnings before Google will disperse a payment. By default, the AdSense minimum is by default, it's set to the minimum, which currently when I'm uploading this video in Israel is 400 shackles. So like $120 thereabouts. That means that every day when YouTube Google is running ads on your YouTube videos, it's going to wait until that amount crawls up to the equivalent of 400 shackles. And once that if that amount is being reached or exceeded by the payment cutoff date, Google is going to pay you that plus whatever you earned by the cutoff date. Now my pro tip is that if you want to do less of this process of receiving payments from Google and creating the corresponding documentation, I would actually raise that payment threshold manually. Now you can really set it to whatever you want, but for instance, you can raise it from 400 shackles up to let's say 2000 or 3000 shackles. And that means that Google will only pay you once your AdSense balance has passed the 3000 shackle mark. What this means is that yes, you're going to be paid less frequently, but you're going to have but each payment is going to be more and you're going to have to create less of those manually generated receipts when AdSense pays you. You could even set it to something like 10,000 shackles and potentially only get paid once a year or once every six months, depending on how much money you're earning through the Google YouTube partner program. I hope this is helpful if you're looking at making money through YouTube in Israel. If you're already set up as an AdSense, as an independent contractor of some sort, it's really, really not that difficult at all. In fact, it's not difficult at all. But just follow this tip to me getting those payments less regular and you'll cut out a little bit of the administrative legwork that you have to go through in order to legally and compliantly generate revenue through AdSense if you're based in Israel.