English English

E-Invoicing in Israel

talk to an e-invoicing expert

Country Situation

General Description

The Israel Invoices model is a pre-clearance allocation-number model introduced to combat fictitious invoices and protect state revenue. OECD reporting links the programme to an estimated annual VAT revenue leakage / potential yield of NIS 2.5bn, around 0.1% of GDP, from fictitious-invoice fraud. Under the Economic Efficiency Law 2023, the Israel Tax Authority issues online allocation numbers for in-scope domestic B2B tax invoices. A valid allocation number is a condition for buyer input VAT deduction where the invoice exceeds the statutory threshold. The current accelerated threshold path is NIS 25,000 in 2024, NIS 20,000 in 2025, NIS 10,000 from 1 January 2026, and NIS 5,000 from 1 June 2026. From 1 July 2026, VAT Union intra-union transactions also require allocation numbers where the statutory threshold is met. The ITA does not act as the invoice delivery network; the supplier still issues the invoice to the buyer through the normal business process.

FAQs

Is e-invoicing mandatory for all businesses in Israel?
No. The Israel Invoices allocation-number requirement applies to VAT-registered suppliers issuing qualifying domestic B2B tax invoices above the applicable threshold before VAT. As of 1 June 2026, the threshold is NIS 5,000. B2C transactions, cross-border transactions, imports, exports, and documents that are not tax invoices are outside the core allocation-number mandate.
Who is the governing entity overseeing e-invoicing in Israel?
The Israel Tax Authority (ITA) operates the Israel Invoices allocation-number model, including the online request and verification services, digital authorisation framework, and Open API environment.
Is there a phased implementation? What are the key deadlines for e-invoicing compliance in Israel?
Yes. The allocation-number threshold has been reduced in phases:

5 May 2024: NIS 25,000 before VAT

1 January 2025: NIS 20,000 before VAT; the ITA may refuse requests where unlawful invoice issuance is suspected

1 January 2026: NIS 10,000 before VAT

1 June 2026: NIS 5,000 before VAT

1 July 2026: qualifying transactions between dealers in the same VAT Union also require allocation numbers.
Is there a national e-invoicing platform in Israel?
Yes. The ITA operates the national Israel Invoices allocation-number service and related request and verification applications. However, it is not an invoice-delivery network: the supplier still sends the invoice to the buyer through the normal business process.
Do businesses need to register for e-invoicing compliance in Israel?
Yes. The dealer and relevant authorised users must register for ITA digital services and complete the required Israel Invoices authorisation process. Businesses using integrated accounting software must also use an updated system and complete the applicable token, OAuth, software, sandbox, production, or partner onboarding steps for the selected route.
How does e-invoicing work in Israel?
The supplier determines whether a domestic B2B tax invoice is reportable and submits selected invoice data to the ITA through accounting software, the ITA application, or an authorised provider. If approved, the ITA returns a 9-digit allocation number, which must be recorded on the invoice before it is issued to the buyer. The ITA does not deliver the invoice to the buyer.
How can buyers verify the validity of an allocation number or supplier invoice?
Authorised dealers and people permitted to perform digital operations on their behalf can use the ITA invoice-details verification service. The buyer enters the supplier's allocation number and can confirm whether the invoice details match the information reported by the supplier. A missing, invalid, or mismatched number should be resolved before input VAT is deducted.
What are the approved e-invoicing formats in Israel?
The ITA allocation-number API uses structured JSON request data. The request contains selected tax-invoice fields rather than the complete legal invoice document. The Israel Invoices model does not prescribe a single supplier-to-buyer invoice exchange format because invoice delivery remains outside the ITA platform.
What is the process for foreign companies issuing e-invoices in Israel?
The allocation-number mandate applies to domestic B2B tax invoices issued within the Israeli VAT system. Foreign entities without Israeli VAT registration are outside the core allocation-number flow. A foreign software provider may support an Israeli taxpayer technically, but production organisation, identity, authorisation, and taxpayer-linking requirements depend on the approved ITA or local-partner route.
Does Israel require real-time reporting of invoices?
Israel requires a pre-clearance allocation-number request for selected data from each in-scope tax invoice. The supplier normally obtains the allocation number before issuing the invoice. This is not full-document real-time reporting or authority-operated invoice delivery.
How are credit notes, cancellations, and corrections handled in Israel?
Credit notes do not require a new allocation number. If an allocation number has been issued but the invoice has not been sent, the number cannot currently be cancelled or edited and should not be used. If an issued invoice must be corrected, the supplier follows the applicable cancellation or credit-note process and may reference the original allocation number for detailed-report reconciliation where relevant.
What are the e-invoicing requirements for cross-border transactions in Israel?
The current Israel Invoices allocation-number mandate applies to domestic B2B transactions between VAT-registered businesses. Exports, imports, and invoices to or from foreign entities are outside the core allocation-number regime and continue through the applicable ordinary VAT and customs processes.
Is an electronic signature required for e-invoices in Israel?
No invoice-level electronic-signature requirement has been identified for the Israel Invoices allocation-number flow. Access to the ITA service instead relies on the ITA identification and authorisation framework, such as smart-card or token-based authentication and OAuth for integrated software.
What are the archiving requirements for e-invoices in Israel?
The current working requirement is to retain the tax invoice and associated compliance evidence for seven years, subject to final Legal confirmation. Relevant evidence may include the allocation-number request and response, allocation number, refusal or error response, buyer-verification evidence, and both the original and updated copy in a retroactive allocation-number case.
Can e-invoices be archived outside Israel?
Archiving outside Israel is understood to be allowed under certain conditions. The exact legal basis, access requirements, integrity controls, and evidence set should be confirmed by Legal before this is treated as a final customer-facing conclusion.

Country Specs

Mandate StatusMandatory
Model TypeClearance
Government EntityITA
FormatsJSON
Infrastructure / PlatformPre-clearance allocation-number model. The supplier or authorised software / service provider submits selected tax-invoice data to the Israel Tax Authority or local partner and receives a 9-digit allocation number before the in-scope tax invoice is issued to the buyer. The ITA does not operate the invoice delivery network; supplier-to-buyer delivery remains outside the authority platform.
E-signature RequiredNo invoice-level e-signature requirement identified. Allocation-number access uses the ITA identification system / smart card or software token-based authentication. Separate detailed VAT report signing may apply outside the core allocation-number request flow.
Key Deadlines11 September 2023: ITA Q&A first published

1 January 2024: Israel Invoices model enters full legal implementation; valid allocation-number requests automatically approved in 2024

5 May 2024: Allocation number required for qualifying invoices above NIS 25,000 before VAT

1 January 2025: Threshold reduced to NIS 20,000; ITA may refuse allocation requests where there are reasonable grounds to suspect unlawful invoice issuance

1 January 2026: Accelerated threshold reduced to NIS 10,000 before VAT

24 May 2026: ITA publishes reminder that the threshold will decrease to NIS 5,000

27 May 2026: ITA Q&A updated, including VAT Union clarification

1 June 2026: Accelerated threshold reduced to NIS 5,000 before VAT

1 July 2026: Dealers registered under the same VAT Union must request allocation numbers for transactions between those dealers when the statutory threshold is met
AR MandatoryYes. Suppliers issuing in-scope domestic B2B tax invoices above the current threshold must request an allocation number from the ITA and include the 9-digit number on the invoice. The supplier / customer remains responsible for determining whether the invoice is reportable.
AP MandatoryNo AP allocation-number request/retrieval flow. Buyer-side obligation is to ensure received in-scope supplier invoices include a valid ITA allocation number before input VAT deduction. Verification may be performed through the ITA service after login/authorisation or potentially through an ecosio / Vertex validation service where the customer or AP process provides the required invoice details. Full AP processing is not currently in scope because non-ecosio suppliers may send arbitrary PDFs or invoice formats, so ecosio cannot assume a structured input such as UBL or CII for reliable ERP-native mapping.
Peppol AvailableNo
Domestic TransactionsYes
Cross-border TransactionsNo
Archiving Period7 years
Archiving AbroadAllowed under certain conditions.

Contact an expert

Feeling lost or need more info about this e-invoicing mandate? ecosio can help!

Our team of e-invoicing experts is ready to guide you through everything needed to stay compliant—not just with this mandate, but with all current and upcoming e-invoicing requirements worldwide.
Send us your questions. We’ll provide clear, actionable answers!

Resources related to e-invoicing

E-invoicing newsletter

Stay ON TOP OF E-INVOICING
Sign up to our e-invoicing newsletter to ensure you don’t miss key e-invoicing updates.

READ MORE

The Benefits of e-invoicing

Find out more about why a growing number of businesses are turning to automation and what the benefits of e-invoicing are

READ MORE

Buy vs Build E-invoicing

Compare in-house vs outsourced e-invoicing. Discover the pros and cons of each approach to ensure you choose the right e-invoicing solution.

READ MORE

Simplifying E-invoicing Compliance Without Slowing Down Your Business

Simplify e-invoicing compliance with scalable strategies that cut risk, reduce manual work, and ensure audit-ready invoicing at scale

READ MORE

E-invoicing in Europe Overview

Discover key insights into Europe’s evolving e-invoicing landscape. Learn about country-specific mandates, timelines, and how to stay compliant across borders

READ MORE

ViDA Webinar

Discover how ViDA’s latest changes will impact you in our expert-led webinar. Gain insights, stay compliant, and prepare your business for success!

READ MORE

Upcoming webinar

15 September 2026

Get ready for Spain’s e-invoicing mandate

SAVE YOUR SEAT

Dernière ligne droite avant la facturation électronique en France

Tout pour finaliser votre préparation avant le go-live :

– FAQ : les réponses aux questions clés

– Checklist : les actions prioritaires

– Guide pays : calendrier et obligations

– Livre blanc : bien choisir votre solution

– Replay : les conseils de nos experts

Accéder au kit