Electronic invoicing guide
Israel
Digital reporting requirements
Clearance
Obligatory
E-invoicing itself is not mandatory; invoices can be issued in paper or electronic format.
However, the clearance requirement is, for invoices above certain thresholds, obtaining an allocation number from the tax authority is mandatory before issuing the invoice, regardless of its format.
Authority
Ministry of Finances.
Platform
Israeli Tax Agency system.
Format
For the validation and allocation number assignment process, the supplier must submit the invoice in JSON format via the ITA’s SHAAM system.
Although the e-invoice for the final customer may be presented in PDF, XML.
Storage time
7 years.
Reporting and processes
Processes
Before the invoice is finalized in the ERP or billing platform, the issuer must submit the invoice details to the government platform (via the ITA’s API service) at the time of issuance.
If approved, the system will assign an allocation number, which is a unique identifier assigned by the Israeli Tax Authority to the invoice. This allocation number must be included in the invoice for it to be valid for VAT purposes.
Once an allocation number has been returned, the issuer must:
-
Save the allocation number in the invoice record.
-
Print the allocation number on the invoice, highlighting the nine right-most digits under “allocation number” (in addition to the internal reference number assigned by the ERP).
-
Include the nine right-most digits in the designated field as part of the detailed VAT report.
Upcoming legislative changes
The Israeli Knesset Finance Committee has accelerated the timeline for the mandatory use of allocation numbers in B2B transactions.
- January 1, 2026: Mandatory for invoices exceeding ILS 10,000 (approximately €2,450).
- June 1, 2026: Mandatory for invoices exceeding ILS 5,000 (approximately €1,220).
These changes advance the previously planned thresholds for 2027 and 2028 to earlier dates in 2026. The initial phases remain unchanged:
- May 5, 2024: Mandatory for invoices over ILS 25,000.
- January 1, 2025: Mandatory for invoices over ILS 20,000
Links of Interest and documents
Links of interest
gov.il
Documents
Taxable invoices.
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