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Israel e-Invoicing

Updated 13 December 2025

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  • Key facts
  • Timeline
  • Tax & Compliance
  • Formats
  • Penalties
  • Exemptions
  • FAQ

Israel is phasing in B2B e-invoicing since May 2024 through an allocation number system, mandatory for invoices above a threshold that falls progressively through 2026. Invoices are submitted as JSON via a secure REST API with OAuth2. B2G and B2C are not yet in scope.

Israel e-Invoicing Overview

B2B
phased
since 5 May 2024
Mandatory for invoices above threshold via allocation number system. Threshold reduces progressively through 2026.
B2G
none
Not currently included in allocation number requirements.
B2C
none
Not included in current e-invoicing mandate.

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Read the full Israel e-invoicing guide

Implementation Timeline(5 events)

Key mandate dates. Select a date for detail, or show all updates below.

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.

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Compliance Regime

CTC Model
Clearance
Pre-clearance required via Israel Tax Authority; invoices must receive unique allocation number before legal issuance. Without allocation number, buyer cannot deduct input VAT.
Network
Clearance
Standards
Israel Invoice Model API v2.0 per ITA specifications

Record-keeping & Reporting

Archiving
7 years retention per Israel VAT Law ; Electronic storage permitted within Israel; offshore storage requires special authorisation.
SAF-T
N/A
No SAF-T implementation; Israel uses allocation number clearance model via Israel Tax Authority (ITA) for real-time invoice validation.

Technical Formats

JSON via secure REST API with OAuth2 authentication

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 .

Exemptions

Below threshold transactions
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.

Read our full Israel e-invoicing compliance guide

In-depth mandate analysis, timeline, exemptions, and vendor selection

Official Sources

  • gov.ilOfficial site
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Related Countries

  • BangladeshPhased
  • MalaysiaPhased
  • NepalPhased
  • PakistanPhased

Frequently asked questions about e-Invoicing in Israel

Israel is currently implementing e-Invoicing in a phased rollout. B2B is in a phased rollout and B2G is not currently required.

B2B e-Invoicing in Israel is in a phased rollout since 2024-05-05. Mandatory for invoices above threshold via allocation number system. Threshold reduces progressively through 2026.

B2G e-Invoicing in Israel is not currently required. Not currently included in allocation number requirements.

Israel supports the following e-Invoice formats: JSON via secure REST API with OAuth2 authentication.

Israel uses the following e-Invoicing standards: Israel Invoice Model API v2.0 per ITA specifications. Archiving requirement: 7 years retention per Israel VAT Law ; Electronic storage permitted within Israel; offshore storage requires special authorisation..

Pre-clearance required via Israel Tax Authority; invoices must receive unique allocation number before legal issuance. Without allocation number, buyer cannot deduct input VAT.

Israel has penalties for e-Invoicing non-compliance. 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 .

Exemptions from Israel e-Invoicing may apply to: Below threshold transactions, Cross-border transactions. Check specific criteria as exemptions vary by transaction type and business size.