ITA e-invoice mandate in Israel
The Israel Tax Authority requires an allocation number on tax invoices above a threshold that has been lowered in steps since 2024.
The Israel Tax Authority (ITA, Rashut HaMisim) introduced a phased requirement in 2024: a tax invoice issued to a registered dealer above a set amount must carry an allocation number issued by the ITA, which the buyer needs in order to deduct input VAT. The threshold, measured before VAT, was NIS 20,000 in 2025, NIS 10,000 from 1 January 2026 and NIS 5,000 from 1 June 2026. The details of how numbers are requested and which invoices are covered are set by the ITA and have changed several times, so always check the ITA website for the current rules.
- Allocation number: issued by the ITA for qualifying tax invoices.
- Threshold before VAT: NIS 20,000 (2025), NIS 10,000 (from 1 January 2026), NIS 5,000 (from 1 June 2026).
- The buyer needs the number to deduct input VAT.
- 4invoices does not request allocation numbers or connect to the ITA.
How it works
Check whether the invoice is covered: it must be a tax invoice with VAT issued to a registered dealer (Osek Murshe), and its amount before VAT must be above the current threshold.
If it is covered, obtain the allocation number through the channels the ITA provides, for example an authorized system, before the buyer relies on the invoice for a deduction.
Show the number on the tax invoice you give to the buyer.
Below the threshold no number is needed. Check the ITA site regularly, because the threshold has been lowered several times.
Keep your invoices and accounting records for the period required by Israeli law. Ask your accountant for the exact period.
Legal framework
- Israel Tax Authority (Rashut HaMisim): guidance on allocation numbers for tax invoices.
- Value Added Tax Law 5736-1975.
Frequently asked questions
Does every Israeli business have to obtain allocation numbers?
Only for covered invoices: tax invoices with VAT issued to registered dealers above the current threshold. Other cases depend on ITA rules, which you should confirm on the ITA website or with your accountant.
What happens if a covered invoice has no allocation number?
The buyer cannot deduct the input VAT on that transaction, so buyers commonly ask suppliers for the number. Any penalties are set by the ITA and the VAT Law.
What is the current threshold?
NIS 5,000 before VAT from 1 June 2026, after NIS 10,000 from 1 January 2026 and NIS 20,000 in 2025. Confirm on the ITA website before relying on it.
Is Israel part of the Peppol network?
Israel runs its own ITA allocation-number system. This page does not cover Peppol. Check the sources of the ITA and of your buyer if you need a specific format.
Does 4invoices obtain allocation numbers or send invoices to the ITA?
No. 4invoices does not connect to the Israel Tax Authority, does not request allocation numbers, does not store ITA artefacts and does not emit ITA or UBL formats. It creates invoices with a VAT rate per line, in any currency with an exchange rate, and lets you download a PDF. It also offers a 6-month free trial without a card.