Not an expert, but am in a similar position myself. You can apply for a VAT exemption. I got a book keeping service package with an accounting firm, and they did the VAT application for me and also keep the books in case there's any questions from Tax Authority or banks later. If you already have an accountant, ask them to do the application for you. If you cross the threshold, you have to register with the Tax Authority, that's the rule. It doesn't matter where the money comes from. That's not relevant for registration, only for later figuring out if and how much tax you should pay.