Israel
ILIsrael's Israel Invoices model requires allocation numbers to support input-VAT deductions on tax invoices above a threshold; the Tax Authority provides an online request service for businesses whose software is not connected.
Guide reviewed .
Invoicing and electronic documents
Allocation numbers for tax invoices (מספר הקצאה, the "Israel Invoices" model)
The Israel Tax Authority provides online allocation numbers for invoices to registered dealers. Businesses using manual books or unconnected software can request a number through its service; allocation is distinct from delivery of the invoice to the buyer.
Online allocation number; manual or software-generated invoice · Official source: Israel Tax Authority · online application for an invoice allocation number and 2026 thresholds
Detailed periodic VAT report
Dealers subject to detailed reporting list each tax invoice in their periodic VAT report, including any allocation number. This is invoice-level e-reporting alongside clearance.
Invoice-by-invoice listing in the periodic VAT report · Official source: Hebrew Wikisource (secondary transcription) · Value Added Tax Law 5736-1975, consolidated text as of July 2026
For an Israeli business buyer claiming input VAT, check the allocation-number threshold separately from the delivery format. The Tax Authority's service supports manual books and unconnected software as well as the wider accounting-system process.
The current thresholds are confirmed by the official service. Detailed statutory exceptions, historical amendments and reporting rules below still rely in part on the explicitly labelled community law transcriptions; they have not all been checked against an accessible official consolidated law.
Legal guide
Real-time clearance · B2B tax invoices
Mandatory above the thresholdThe Tax Authority confirms that an allocation number is needed for input-VAT deduction above NIS 20,000 before VAT in 2025, NIS 10,000 from 1 January 2026, and NIS 5,000 from 1 June 2026. The online request includes the customer's registered-dealer number, invoice number, amount before VAT and VAT amount.
Official source: Israel Tax Authority · online application for an invoice allocation number and 2026 thresholdsReal-time clearance · original schedule
Replaced by an accelerated scheduleThe Economic Efficiency Law (Legislative Amendments to Achieve the Budget Targets for 2023 and 2024) 5783-2023 introduced the requirement as a temporary measure for 2024 to 2028. The threshold was NIS 25,000 in 2024 and NIS 20,000 in 2025, falling to NIS 15,000 in 2026, NIS 10,000 in 2027 and NIS 5,000 thereafter. The 2025 budget legislation replaced the steps for invoices issued from 1 January 2026 with NIS 10,000 until May 2026 and NIS 5,000 from then on.
Official source: Hebrew Wikisource (secondary transcription) · Value Added Tax Law 5736-1975, consolidated text as of July 2024 with the original 2024–2028 thresholdsExceptions
Tax Authority system outagesWhere the Tax Authority's computer systems prevented allocation for technical reasons, the Director may allow the deduction of input VAT on invoices without a number. The same threshold and number rule also applies to input VAT on certain real-estate sales and on purchases made before VAT registration.
Official source: Hebrew Wikisource (secondary transcription) · Value Added Tax Law 5736-1975, consolidated text as of July 2026E-reporting · detailed VAT reports
Statutory widening; implementation concessions need checkingThe 2025 law expands detailed periodic reporting to dealers with turnover above NIS 500,000, or required to keep double-entry books. Its statutory start is 1 September 2025, for reports from October. This law transcription does not establish the later administrative transition dates and concessions, which must be checked with the Tax Authority.
Official source: Hebrew Wikisource (secondary transcription) · Law to Achieve the Budget Targets and Implement Economic Policy for the 2025 Budget Year (Legislative Amendments) 5785-2025Trade with the Palestinian Authority
Online submission requiredSince 1 August 2025, tax invoices issued by Israeli licensed dealers to businesses registered with the Palestinian Authority must be in a form set by the Director and submitted online. Input VAT on invoices from such businesses is deductible only in the form the Director set.
Official source: Hebrew Wikisource (secondary transcription) · Law to Achieve the Budget Targets and Implement Economic Policy for the 2025 Budget Year (Legislative Amendments) 5785-2025B2G · public-sector invoices
No e-invoicing obligation found in the sources reviewedThe allocation-number service does not establish a structured B2G exchange obligation. Broader legal details in this guide remain attributed to the law transcriptions, rather than a full official-law review.
Official source: Hebrew Wikisource (secondary transcription) · Value Added Tax Law 5736-1975, consolidated text as of July 2026VAT
Standard rate 18%The standard VAT rate is 18%. Exports of goods and certain services are zero-rated; banks and other financial institutions pay a VAT-equivalent tax on payroll and profits instead.
Official source: PwC Worldwide Tax Summaries (secondary) · Israel, other taxes
Timeline
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Threshold falls to NIS 20,000
NIS 20,000 before VAT.
Official source: Israel Tax Authority · online application for an invoice allocation number and 2026 thresholds -
Invoices to Palestinian Authority businesses go online
Historical. Tax invoices issued to businesses registered with the Palestinian Authority must be submitted online in the Director's form.
Official source: Hebrew Wikisource (secondary transcription) · Law to Achieve the Budget Targets and Implement Economic Policy for the 2025 Budget Year (Legislative Amendments) 5785-2025 -
Detailed VAT reporting widened
Historical. The widened detailed-reporting rule took effect and applies to reports filed from 1 October 2025.
Official source: Hebrew Wikisource (secondary transcription) · Law to Achieve the Budget Targets and Implement Economic Policy for the 2025 Budget Year (Legislative Amendments) 5785-2025 -
Threshold falls to NIS 10,000
NIS 10,000 before VAT.
Official source: Israel Tax Authority · online application for an invoice allocation number and 2026 thresholds -
Threshold falls to NIS 5,000
NIS 5,000 before VAT.
Official source: Israel Tax Authority · online application for an invoice allocation number and 2026 thresholds
Peppol in Israel
- Directory participants
- 18
- Document families
- 5
Peppol Authority: OpenPeppol.
Peppol Directory data as of .
How to read these numbersDocuments on Peppol
- 12 participants
- 12 participants
- ApplicationResponse9 participants
- 4 participants
- 1 participant
Registrations over time
Peppol Directory data as of .
Show as a table
| Month | New registrations |
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Registration dates in the current Directory snapshot.