Israel e-invoicing

With no establishment and no Israeli VAT registration, you do not issue Israeli tax invoices – so the allocation-number system does not concern you. Revisit if you set up locally or register with the ITA.

Allocation numbers attach to Israeli tax invoices issued by registered dealers – a non-resident without establishment is generally not issuing them. A local VAT registration (for instance through a representative) that does issue Israeli tax invoices is a different position: the thresholds then apply like anyone else's. Confirm your registration type with the ITA before relying on an exemption.

The accelerated schedule (2025 Budget Law; VAT Implementation Order 01/2025) took the threshold from NIS 25,000 in May 2024 to NIS 5,000 since 1 June 2026 – routine B2B invoices now need allocation numbers. Authorised dealers, companies and partnerships all request them; without one, your business customer cannot deduct the input VAT, which in practice makes compliance a condition of getting paid.

Since 1 June 2026 every B2B tax invoice of NIS 5,000 or more (excluding VAT) needs a 9-digit allocation number requested through the ITA's API before issue – and all requests have been reviewed before approval since 1 Jan 2025. Build the API call into your billing flow: a missing number costs your customer the input VAT deduction, and the ITA can refuse allocation where it suspects fictitious invoicing (with a hearing and appeal route).