E-Invoicing Country

Israel

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Live since May 2024

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Mandate Overview

The mandate

Israel operates a clearance-model e-invoicing regime run by the Israel Tax Authority (ITA), in which invoices above a value threshold must obtain an Allocation Number from the ITA before they can be used to claim input VAT. The mandate launched on May 5, 2024 for invoices above 25,000 NIS (excluding VAT) and is being progressively tightened: the threshold drops to 20,000 NIS in 2025, 10,000 NIS in 2026, and 5,000 NIS in 2027 and beyond. Each in-scope invoice must be transmitted to the ITA and stamped with an Allocation Number; without it, the buyer cannot legally deduct the VAT.

Timeline

Key milestones

2024
May 1, 2024
  • Clearance mandatory for B2B invoices above 25,000 NIS (excl. VAT)

2025
Jan 1, 2025
  • Threshold lowered to 20,000 NIS

2026
Jan 1, 2026
  • Threshold lowered to 10,000 NIS

2027
Jan 1, 2027
  • Threshold lowered to 5,000 NIS

Flowie Coverage

How Flowie supports Israel

Flowie generates invoices ready for ITA clearance and integrates with the Allocation Number API. Local accredited service provider partnerships required for full transmission.

FAQ

Common questions

When does the mandate apply to my company?

Since May 5, 2024 for any B2B invoice above 25,000 NIS (excluding VAT). The threshold steps down annually — to 20,000 NIS in 2025, 10,000 NIS in 2026, and 5,000 NIS from 2027 — eventually capturing nearly all B2B invoicing.

What is an Allocation Number?

A unique identifier issued by the Israel Tax Authority for each in-scope invoice. The supplier must transmit the invoice details to the ITA via API and receive the Allocation Number before the buyer can deduct the input VAT. Without the number, the deduction is denied.

Ready for Israel?

Flowie keeps you compliant, automatically.

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