Israel e-Invoicing Mandate
Clearance model · invoice allocation numbers via the SHAAM system
Israel operates a clearance-style regime under which B2B tax invoices above a shekel threshold must receive an allocation number from the Israel Tax Authority before they are issued. Since 1 June 2026 the threshold is NIS 5,000 excluding VAT, down from NIS 10,000 on 1 January 2026. Without a valid allocation number the buyer cannot deduct input VAT.
| Status | Live |
|---|---|
| Legal basis | Economic Efficiency Law (Legislative Amendments for Achieving Budget Targets for the 2023 and 2024 Budget Years), 5783-2023, amending the Value Added Tax Law, 5736-1975; accelerated thresholds enacted in the budget law for the 2025 fiscal year and confirmed in Israel Tax Authority VAT Implementation Order 01/2025, published 7 December 2025. |
| Phase-in | 4 phases, 2024 to 2026 |
| Scope | B2G: Mandatory · B2B: Mandatory · B2C: Not required |
| Format | JSON (SHAAM API request/response) · Israel Invoice (Chashbonit Israel) API specification |
| Platform | SHAAM system API of the Israel Tax Authority · Pre-issue clearance; an allocation number is requested and returned before the invoice is issued |
| Penalties | An invoice issued without a required allocation number is not valid for input VAT deduction, so the buyer loses 100% of the VAT on that invoice. |
Phase-in timeline
2024 to 2027- 2024Allocation number requirement goes live for high-value B2B invoicesinvoices above NIS 25,000 excluding VAT
- 2025Threshold steps down for the first full year of operationinvoices above NIS 20,000 excluding VAT
- 2026Accelerated threshold reduction takes effect, skipping the planned NIS 15,000 stepinvoices of NIS 10,000 or more excluding VAT
- 2026Final planned threshold takes effect, completing the rollout two years earlyinvoices of NIS 5,000 or more excluding VATToday
Mandate at a glance
Verified Jul 2026- B2G mandatory
- B2B mandatory
- B2C not required
- Non-residents: out of scope
- JSON (SHAAM API request/response)
- Israel Invoice (Chashbonit Israel) API specification
- SHAAM system API of the Israel Tax Authority
- Real-time clearance
- 7 years
- Digital signature: optional
- Storage: Domestic
- An invoice issued without a required allocation number is not valid for input VAT deduction, so the buyer loses 100% of the VAT on that invoice.
- The Israel Tax Authority may refuse to issue an allocation number where it suspects a fictitious invoice, blocking the transaction from being invoiced compliantly.
- General VAT Law sanctions for defective invoicing and record-keeping continue to apply alongside the allocation number rules.
Full technical breakdown: Israel guide on e-Invoice.app
Is e-invoicing mandatory in Israel?
Yes. E-invoicing in Israel is mandatory for B2G, B2B transactions. Israel operates a clearance model via SHAAM system API of the Israel Tax Authority. Non-resident businesses are outside the scope of the mandate.
What are the Israel e-invoicing deadlines?
All phases of the Israel mandate are already in force; no further deadlines are currently scheduled.
| Date | Scope | Obligation | Threshold |
|---|---|---|---|
B2B | Allocation number requirement goes live for high-value B2B invoices | invoices above NIS 25,000 excluding VAT | |
B2B | Threshold steps down for the first full year of operation | invoices above NIS 20,000 excluding VAT | |
B2B | Accelerated threshold reduction takes effect, skipping the planned NIS 15,000 step | invoices of NIS 10,000 or more excluding VAT | |
B2B | Final planned threshold takes effect, completing the rollout two years early | invoices of NIS 5,000 or more excluding VAT |
What format and platform does Israel require?
Israel requires e-invoices in JSON (SHAAM API request/response) (Israel Invoice (Chashbonit Israel) API specification), exchanged via SHAAM system API of the Israel Tax Authority on a real-time basis. Invoices must be retained for 7 years. For format specifications and implementation detail, see the full Israel technical guide on e-Invoice.app.
What are the penalties in Israel?
- An invoice issued without a required allocation number is not valid for input VAT deduction, so the buyer loses 100% of the VAT on that invoice.
- The Israel Tax Authority may refuse to issue an allocation number where it suspects a fictitious invoice, blocking the transaction from being invoiced compliantly.
- General VAT Law sanctions for defective invoicing and record-keeping continue to apply alongside the allocation number rules.
What changed recently?
- The allocation number threshold dropped to NIS 5,000 excluding VAT, completing Israel's phased rollout two years ahead of the original 2028 target.
- The threshold fell to NIS 10,000 excluding VAT under the accelerated schedule confirmed in VAT Implementation Order 01/2025, skipping the previously planned NIS 15,000 step.
Need the full Israel compliance detail?
This page is a high-level snapshot. For registration procedures, technical specifications, exemption rules and implementation guidance, see the detailed Israel country guide on our partner site e-Invoice.app.
Israel e-invoicing guide on e-Invoice.appIsrael e-invoicing: frequently asked questions
Do B2C and B2G transactions need an allocation number?
The requirement targets tax invoices issued to registered dealers, so ordinary B2C sales to private consumers are outside it. Invoices to public bodies that are registered dealers follow the same B2B rules. Israel's standard VAT rate is 18% following the increase on 1 January 2025.
Do non-resident suppliers need Israeli allocation numbers?
The obligation sits with Israeli registered dealers issuing tax invoices, so businesses without an Israeli VAT registration are not required to obtain allocation numbers. Israeli buyers should nevertheless check that any domestic supplier invoice above the threshold carries a valid number before claiming input VAT.
How do allocation numbers work for credit notes, corrections and bulk invoicing runs?
Each qualifying tax invoice needs its own number requested through the SHAAM API before issue, and corrections generally require a fresh request rather than reuse of the original number. Timing, retry handling, offline fallbacks and bulk integration patterns are covered in the detailed Israel guide on e-Invoice.app.
More detailed questions? See the full Israel guide on e-Invoice.app.
Sources
This page was verified against the following sources on 23 July 2026.
- Israel Invoice (allocation numbers) landing page (Israel Tax Authority (gov.il))
- Application for an allocation number for a tax invoice (Israel Tax Authority (gov.il))
- Israel: Tax Authority Confirms Accelerated Timeline for CTC Invoice Allocation Number (Sovos)
- Israel: Expansion of mandatory e-invoicing model (KPMG TaxNewsFlash)
- Israel Accelerates CTC Invoice Allocation Number Rollout: Lower Thresholds Effective 2026 (VATupdate)
Follow e-Invoice.app on LinkedIn for e-invoicing mandate news and deadline alerts.
Latest Israel VAT & e-invoicing news
Finance Minister Smotrich Slams Likud's Communist Faction for Nixing $150 VAT Exemption Order
Finance Minister Bezalel Smotrich sought to double the VAT exemption for personal online imports to $150, but lawmakers rejected the proposal. He subsequently signed an order raising the exemption to $130, a move that has been appealed to Israel's top court. The change affects the VAT treatment of online purchases by Israeli consumers.
Knesset strikes down Smotrich’s VAT exemption order
The Knesset rejected Finance Minister Bezalel Smotrich’s order to double the VAT exemption ceiling on personal imports to $150, voting 59 against and 25 in favor. The order was intended to lower the cost of living and reduce online purchase prices, but critics warned it would harm local businesses.
Knesset Revokes Smotrich's VAT Exemption After Netanyahu Declares Free Vote
The Israeli Knesset voted on 24 February 2026 to revoke a ministerial order that would have raised the VAT exemption threshold for online purchases from $75 to $150. The order, which had been in effect since December 24, was defeated 25–59 after Prime Minister Netanyahu allowed a free vote for coalition lawmakers. The revocation removes the exemption for imported packages valued up to $150, restoring the previous $75 threshold.
Additional transactions covered by Israel’s e-invoicing mandate in 2026
Israel’s e‑invoicing mandate is expanding in 2026, lowering the invoice amount thresholds that trigger mandatory electronic invoicing. From 1 January 2026 invoices above 10,000 NIS must use the SHAAM allocation system, and from 1 June 2026 the threshold drops to 5,000 NIS. The ITA’s approach is based on invoice value rather than overall turnover, and suppliers must obtain and display an allocation number on each invoice.
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