Tax invoice, receipt and invoice-receipt in Israel
Cheshbonit mas, kabbala and cheshbonit mas kabbala: what each document is for.
A tax invoice (cheshbonit mas) is the document that lets a registered buyer deduct input VAT. A receipt (kabbala) confirms payment. A combined tax invoice-receipt (cheshbonit mas kabbala) does both when payment is made at the time of the sale. Osek Murshe dealers issue tax invoices. Osek Patur dealers do not charge VAT and issue receipts. Issuing the wrong document can cost the buyer the VAT deduction.
- Tax invoice: request for payment with VAT, used by the buyer for deduction.
- Receipt: proof that payment was received.
- Tax invoice-receipt: one document when payment is immediate.
- Hebrew designations such as 'חשבונית מס' appear on the tax invoice.
How it works
Check your status. An Osek Murshe issues tax invoices. An Osek Patur issues receipts, without VAT.
Choose the document. Use a tax invoice when payment comes later, a receipt when you are paid against an earlier invoice, and an invoice-receipt when you are paid at the sale.
Fill in the tax invoice: supplier name, address and nine-digit dealer number, buyer details and dealer number for B2B, a sequential number, the date, the description and quantities, VAT as a separate line and the total.
For foreign currency, show the amount in that currency, the NIS equivalent and the exchange rate used.
Where the invoice is above the allocation number threshold and the buyer needs it for deduction, obtain the number before relying on the invoice.
Legal framework
- Value Added Tax Law 5736-1975.
- VAT Regulations on tax invoice content.
- Israel Tax Authority guidance on tax documents.
Frequently asked questions
What is the difference between a tax invoice and a receipt in Israel?
A tax invoice records the sale and the VAT, and the buyer uses it to deduct input VAT. A receipt records that money was received. They can be combined in a tax invoice-receipt.
Which document does an Osek Patur issue?
A receipt, without VAT, since an Osek Patur does not charge VAT. The buyer cannot deduct VAT because none is shown.
Can the invoice be in a language other than Hebrew?
Sources on the invoice rules say the Hebrew designations such as 'חשבונית מס' must appear even if the rest is in another language. Confirm the current rule with the Israel Tax Authority or your accountant.
Does 4invoices issue authorized Israeli tax documents?
No. 4invoices creates invoices with a VAT rate per line, in any currency with an exchange rate, and lets you download a PDF. It does not issue documents authorized by the Israel Tax Authority, does not obtain allocation numbers and does not check dealer numbers.