Allocation number threshold in Israel: NIS 5,000 from June 2026
The threshold for an Israel Tax Authority allocation number fell from NIS 20,000 in 2025 to NIS 10,000 and then NIS 5,000 in 2026.
From 1 June 2026 an allocation number is required for tax invoices above NIS 5,000, excluding VAT. The threshold was NIS 20,000 during 2025 and NIS 10,000 from 1 January 2026. The step of NIS 15,000 was skipped. The number is issued by the Israel Tax Authority (ITA), and the buyer needs it to deduct input VAT. It applies to invoices that include VAT and are issued to a registered dealer (Osek Murshe).
- 2025: NIS 20,000 before VAT.
- From 1 January 2026: NIS 10,000 before VAT.
- From 1 June 2026: NIS 5,000 before VAT.
- The allocation number is a 9-digit number issued by the ITA.
How it works
Take the invoice amount before VAT. The threshold is compared with the net amount, not the total with VAT.
Check that the invoice includes VAT and is addressed to a registered dealer (Osek Murshe). Reports on the ITA rules describe the number as required for these invoices when the buyer needs it to claim input VAT.
If the net amount is above the current threshold, obtain the allocation number from the ITA through the channels the authority provides, before the invoice is used for a deduction.
Show the number on the tax invoice. Without a valid number the buyer loses the right to deduct input VAT on that transaction.
Below the threshold, no number is needed. Check the ITA site for further changes, because the thresholds have changed several times.
Legal framework
- Israel Tax Authority (Rashut HaMisim): guidance on allocation numbers for tax invoices.
- VAT Implementation Order 01/2025 (reported by tax-news sources).
- Value Added Tax Law 5736-1975.
Frequently asked questions
What is the allocation number threshold in Israel today?
NIS 5,000 before VAT, from 1 June 2026, according to the sources reviewed on 30 September 2026. It was NIS 10,000 from 1 January 2026 and NIS 20,000 in 2025. Confirm the current figure on the ITA website before relying on it.
Is the threshold measured with or without VAT?
Without VAT. The comparison uses the invoice amount before VAT.
What happens to the buyer if the invoice has no allocation number?
When a number is required and missing, the buyer cannot deduct the input VAT on that transaction. This is why buyers ask suppliers for the number.
Does 4invoices obtain allocation numbers from the Israel Tax Authority?
No. 4invoices does not connect to the Israel Tax Authority and does not request allocation numbers. It creates an invoice with a VAT rate per line, supports any currency with an exchange rate, and downloads a PDF. Obtain the number through the ITA channels or an authorized system.