Israel e-Invoicing Mandate

This guide provides an overview of e-Invoicing requirements in Israel, including the legal framework, compliance obligations, and key reporting considerations. It is intended to assist businesses that issue or receive invoices for transactions subject to VAT in Israel. 

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Autorità fiscale

Israel Tax Authority

Data di avvio del mandato

5 May 2024 (above certain threshold)

Firma digitale

Not Required

Archiviazione

Mandatory - 7 Years

Formato della fattura

JSON or PDF/A-3

Israel introduced a phased, real-time e-invoicing control regime under the Economic Efficiency Law (2023) as part of a broader tax modernisation and VAT-fraud prevention programme. The system is built around a centralised pre-clearance “allocation number” mechanism: for in-scope B2B invoices above a rolling threshold, suppliers must request and obtain a unique allocation number from the Israel Tax Authority (ITA) before the invoice can be considered valid for VAT purposes. The allocation process can be done via accredited accounting software/API integration or via an online ITA portal for manual users. The threshold reduces in phases through 2026, progressively expanding coverage of domestic B2B activity.

Dettagli dell'incarico
Stato dell'incarico
Icona parziale

Effective: May 2024

Israel’s B2B e-Invoicing mandate is live (when invoice exceeds a certain threshold) 

Quali tipi di transazioni devono essere comunicate tramite e-Invoicing?

B2B (Domestic)

Mandatory when invoice exceeds the threshold (allocation number required)

B2G, B2C, Cross-border

Not in scope (currently)

Esistono dei requisiti minimi che determinano e-Invoicing ?

  • From 5 May 2024: > NIS 25,000
  • From 1 Jan 2025: > NIS 20,000
  • From 1 Jan 2026: > NIS 10,000
  • From 1 Jun 2026: > NIS 5,000

What are the implementation dates of the e-Invoicing mandate?

Tipo di transazione
5 May 2024 (>25k NIS)
1 Jan 2025 (>20k NIS)
1 Jan 2026 (>10k NIS)
1 June 2026 (>5k NIS)
2030 (EU ViDA)
Locale - B2G (Pubblico)
N/A
Locale - B2B (nazionale)
*
**
***
****
****
Locale - B2C (mercato interno)
N/A
Informazioni locali - Informazioni transfrontaliere
N/A
Estero - B2B/B2C (non ancora affermato)
*
Mandatory for invoices exceeding 25,000 NIS
**
Mandatory for invoices exceeding 20,000 NIS
***
Mandatory for invoices exceeding 10,000 NIS
****
Mandatory for invoices exceeding 5,000 NIS
Non obbligatorio
N/A
EU ViDA not applicable (Israel is non-EU)
Do I need to have a permanent establishment in Israel to be required to e-Invoice?
Not strictly. The trigger is tax liability / VAT registration and issuing domestic B2B invoices over the threshold, not physical presence alone.
 
Local suppliers (Israel VAT-registered): In scope for domestic B2B invoices above the threshold.
 
Foreign suppliers with Israeli VAT registration (e.g., via fiscal rep / local structure): In scope for domestic B2B invoices above the threshold.
 
Foreign suppliers with no Israeli VAT presence / foreign invoices: Not in scope (currently).
B2B (Domestic): Yes – applies to VAT-registered (“authorized dealers”) issuing domestic B2B tax invoices above the threshold (where the buyer deducts input VAT).
 
B2G / B2C / Cross-border: Not in scope (currently), so VAT registration does not trigger this mandate for those transaction types at present.

Real-time / pre-issuance. The allocation number must be obtained from ITA before the invoice is considered valid.

Yes. Key consequence: invoices issued without a valid allocation number (when required) may be treated as non-compliant, and the buyer may be denied input VAT deduction. The ITA may also apply administrative enforcement (fines/penalties), and allocation requests may be refused if a transaction is suspected to be fictitious, triggering a correction/appeal process.

Steps VAT IT can assist with

1. Confirm whether invoices fall within scope (domestic B2B) and exceed the current threshold.
2. Ensure VAT dealer status and required identifiers are in place (supplier + customer VAT numbers for clearance request).
3. Choose submission method: accredited software/API integration or ITA’s manual online application.
4. Configure invoice data to include required fields and submit the allocation-number request to ITA in real time.
5. Receive the ITA allocation number and embed it into the final invoice before sending to the buyer.
6. Implement compliant e-archiving (minimum 7 years) preserving invoice integrity and accessibility (can be stored abroad).

Domande frequenti

Primo trimestre | Riappropriazione

Per garantire la conformità è necessario comprendere le normative locali in materia di IVA nei diversi paesi, tenere registri accurati e utilizzare la documentazione adeguata. VAT IT la propria competenza in questi ambiti, assicurando che le vostre procedure di recupero dell'IVA siano conformi alle normative vigenti in ciascuna giurisdizione.

Per garantire la conformità è necessario comprendere le normative locali in materia di IVA nei diversi paesi, tenere registri accurati e utilizzare la documentazione adeguata. VAT IT la propria competenza in questi ambiti, assicurando che le vostre procedure di recupero dell'IVA siano conformi alle normative vigenti in ciascuna giurisdizione.

Per garantire la conformità è necessario comprendere le normative locali in materia di IVA nei diversi paesi, tenere registri accurati e utilizzare la documentazione adeguata. VAT IT la propria competenza in questi ambiti, assicurando che le vostre procedure di recupero dell'IVA siano conformi alle normative vigenti in ciascuna giurisdizione.

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