e-Invoicing in Israel

How the electronic invoicing system works in Israel

Israel uses a centralized tax control model for certain B2B invoices. Before sending the invoice to the customer, the issuer must submit its information to the Israel Tax Authority (ITA) and obtain an assignment number. This identifier is essential for the recipient to claim input tax credits.

The invoice validation model in Israel has been implemented gradually based on the pre-VAT transaction amount. Starting in June 2026, the assignment number will be mandatory for transactions exceeding 5,000 NIS. This development expands the system’s scope and requires more companies to review how they generate, validate, and deliver their invoices.

Compliance involves more than just sending information to the tax authority. The process must be integrated with the ERP system to extract the required data, transmit it via the ITA’s API, receive the assignment number, and incorporate it into the invoice before it is issued. Poor system integration, errors in master data, or manual intervention can disrupt the workflow and affect the tax’s deductibility.

This video will help you understand the basic journey of an invoice within the Israeli system and how to automate communication with the ITA. It is especially useful for tax, finance, and IT teams that need to grasp the technical process before delving into the details of electronic invoicing requirements in Israel.