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A Small Claim Against a Business in Israel: The Right Court, Fee, and Evidence

Even a compelling consumer dispute can stall because of an incorrectly identified defendant, the wrong court, or an inaccurate company address. We explain where to file a small claim, how to calculate the fee, and what to prepare so that the court sees not emotionally charged correspondence, but a clear account of the loss.

Numbers and facts
  • •Up to ₪39,900 — the limit as of January 1, 2026
  • •1% of the claim amount — the fee
  • •₪50 — the minimum fee
  • •Up to 5 claimants and 5 defendants online
  • •3 complete copies for manual filing

First, Check Whether a Small Claim Is Appropriate

A private individual may file a small claim, including an exempt or licensed sole proprietor; a limited liability company may not itself use this procedure. As of January 1, 2026, the maximum amount is 39,900 shekels. A claimant may seek money, replacement or repair of a product, or cancellation of a transaction within the prescribed limit. The defendant may be an individual, company, partnership, nonprofit organization, or public authority. If the business is registered as a sole proprietorship, the claim must be brought personally against the owner, not against the trade name displayed on the sign.

The Court Is Not Chosen for the Buyer’s Convenience

The general rule is to apply to the Small Claims Court in the place where the defendant resides or conducts business, not where the claimant resides. Other connecting factors are also possible: the place where the obligation was entered into or performed, where the product was delivered, or where the act or omission giving rise to the claim occurred. For disputes related to online advertising or online commerce, filing is also permitted where the claimant resides or conducts business. If there are several defendants, when filing manually, the locality is selected based on one of them. These rules are based on the Courts Law [Consolidated Version], 5744–1984, and the Small Claims (Procedure) Regulations, 5737–1976.

The Cost of Filing: One Percent, but No Less Than 50 Shekels

The fee is 1% of the amount claimed, with a minimum of 50 shekels. Therefore, a claim for 4,000 shekels carries a fee of 50 shekels, a claim for 12,000 carries a fee of 120 shekels, and a claim for the maximum 39,900 carries a fee of 399 shekels. For electronic filing, payment may be made only by credit card. When filing through the court registry, payment may be made by credit card in the presence of the cardholder or in cash at the Postal Bank using a voucher obtained from the court. If funds are insufficient, an application for exemption from the fee may be filed.

The Correct Defendant and Address Determine Whether Service Succeeds

The claim must state the defendant’s exact full name, full address including postal code, telephone number, and identification number—the identity card number or company registration number. Basic company details and its address can be checked free of charge through the Companies Registry; for a sole proprietor, the owner’s number usually matches the business number and appears on the invoice or receipt. The court needs an exact address to serve the claim documents and summon the defendant, so an old store address or merely a commercial name creates a practical problem. A claim may be filed without an identification number; however, if that number is absent from the judgment, the claimant will be unable to open enforcement proceedings if the defendant does not pay voluntarily. After filing, the case and court notices should be checked in the Net HaMishpat system rather than assuming that service has occurred automatically.

The Evidence Should Tell the Story by Date

The claim should set out the events in sequence, specifying dates and places, and then separately explain the amount claimed and its components. The materials should include the contract or order, invoices and receipts, correspondence, photographs, recordings, and an expert opinion if they support specific assertions. The court needs to see the connection between the business’s promise, the breach, and the calculated loss: for example, it is not enough to write that “the product is defective” if a receipt, a repair request, the seller’s response, and photographs of the defect can be attached. It is best to gather the evidence before filing, because adding it later will require the court’s permission. For proposed witnesses, the full name, mobile telephone number, and email address must be provided.

Online or on Paper: Technical Differences Matter

The electronic form can be completed only on a computer, not on a telephone; online filing allows up to five claimants and five defendants. Alternatively, the form may be printed and filed at the court registry or sent by mail. Manual filing requires three complete copies of the claim with all attachments, plus one additional complete copy for each additional defendant. A handwritten form is acceptable if the text is legible, but the claim may be filed only in Hebrew. If the amount exceeds the small-claims limit, monetary claims of up to 75,000 shekels may be heard under the expedited procedure of the Magistrates’ Court, where different rules and a different fee apply.

FAQ

Can I file a small claim where I live?

Usually not: the primary connecting factors are where the defendant resides or conducts business, where the obligation was entered into or performed, where the product was delivered, or where the disputed act occurred. An exception is provided, in particular, for online advertising and online commerce, in which case the claimant may also choose the place where they reside or conduct business.

Whom should I sue if the receipt shows only the store’s name?

You need to determine the business’s legal form. If it is a company, specify its exact registered name, number, and address; if it is a sole proprietorship, specify the owner as a private individual, whose number usually appears on the invoice or receipt.

What is the fee for a claim of 5,000 shekels?

The fee will be 50 shekels: this is the minimum amount. For an amount exceeding 5,000 shekels, the fee is calculated at 1% of the claim.

Can evidence be attached after the claim has already been filed?

You may attempt to do so only with the court’s permission. Therefore, it is advisable to prepare and attach correspondence, receipts, photographs, recordings, and other supporting materials from the outset.

What should I do if the business did not pay after the court’s judgment?

The work of the Small Claims Court ends when it issues its judgment. The successful party may apply to the Enforcement and Collection Authority with the original signed judgment and request its enforcement; the debtor’s identification number is especially important for this purpose.

What to do next

Before filing, verify the business’s legal name, number, and current address, and then choose the court according to the rules of territorial jurisdiction. Prepare a chronology, break down the amount claimed item by item, and gather supporting evidence for each item in advance. The limit and payment procedure should be checked again on the official website immediately before filing, because the prescribed amounts change periodically.

Sources

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Case analysis based on court rulings

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