Invoices below the applicable threshold (NIS 5,000 from June 2026) do not require allocation numbers.
Cross-border transactions
Exports, imports, and cross-border transactions remain outside the allocation number system and follow traditional VAT reporting.
Penalties
Missing allocation number
Invoices without valid allocation number display: "Input tax should not be deducted in respect of this invoice". Buyer cannot claim VAT deduction per ITA guidelines .
Standards:
Israel Invoice Model API v2.0 per ITA specifications
Supported Formats:
JSON via secure REST API with OAuth2 authentication
Clearance Model:
Pre-clearance required via Israel Tax Authority; invoices must receive unique allocation number before legal issuance. Without allocation number, buyer cannot deduct input VAT.
Archiving Requirements:
7 years retention per Israel VAT Law ; Electronic storage permitted within Israel; offshore storage requires special authorization.
N/A
No SAF-T implementation; Israel uses allocation number clearance model via Israel Tax Authority (ITA) for real-time invoice validation.
Pilot phase begins
1 January 2024
Pilot
Voluntary pilot period for Israel Invoices allocation number system. All invoices receive allocation numbers except for technical errors.
Mandatory for invoices >NIS 25,000
5 May 2024
Large transactions
Allocation numbers required for tax invoices exceeding NIS 25,000 per Israel Tax Authority . Without allocation number, buyer cannot deduct input VAT.
Threshold reduced to NIS 20,000
1 January 2025
Expanded coverage
Allocation number requirement extended to invoices exceeding NIS 20,000.
Threshold reduced to NIS 10,000
1 January 2026
Broader coverage
Allocation number requirement extended to invoices exceeding NIS 10,000 as announced by Knesset (March 2025) .
Threshold reduced to NIS 5,000
1 June 2026
Near-universal B2B
Final threshold reduction to NIS 5,000, covering most B2B transactions.