E‑invoicing in Israel
B2B transactions
Business-to-business (B2B) e-invoicing is mandatory in Israel for invoices above NIS 20,000 (pre‑VAT). Such invoices must be sent to the Israel Tax Authority (ITA) for real‑time validation via the SHAAM platform. Once validated, e-invoices are given an allocation number before being delivered to the recipient.
From 1 January 2026, the threshold will lower to include invoices above NIS 15,000. From 1 January 2027, it will lower further to include invoices above NIS 10,000.
Before issuing an invoice, issuers must submit the data via an API or web portal in the accepted JSON/XML format. The ITA validates the data in real-time, then assigns an allocation number once accepted. The allocation number must be included, along with a digital signature, within the invoice issued to the buyer.
Businesses must retain invoices digitally for seven years to meet Israeli archiving requirements.
B2G transactions
Business-to-government (B2G) e-invoicing is not currently mandatory in Israel. Government procurement suppliers are not yet required to pre‑clear invoices via the ITA system.
B2C transactions
Business-to-consumer (B2C) e-invoicing is not currently mandatory in Israel. However, businesses can opt in to the ITA system on a voluntary basis.
Live/real‑time reporting in Israel
Israel’s e‑invoicing model operates as a continuous transaction control (CTC) system. Issuers of e-invoices must submit data in real time prior to issuance. The ITA validates data and returns an allocation number instantly, which is the clearance trigger.
Noncompliance penalties in Israel
If businesses issue e-invoices above the thresholds without allocation numbers, input VAT cannot be reclaimed by the buyer. This can create financial loss and may expose the supplier to audit adjustment or penalties.
Other resources
Explore global VAT updates, new e-invoicing mandates, and key U.S. sales tax changes in this annual Avalara report.
Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers.
Manage international tax with cross-border solutions for VAT, HS code classification, trade restrictions, and more.
