Israel’s New Electronic Invoicing Model for Tax Compliance

New Electronic Invoicing Model in Israel:

1. Implementation Date: Starting May 5, 2024, Israel is implementing a new requirement for electronic invoicing.
2. Tax Invoice Requirement: For tax invoices exceeding NIS 25,000, it will be mandatory to display an allocation (confirmation) number issued by the Israel Tax Authority (ITA).
3. Purpose of Allocation Number: The display of this number on invoices is essential for businesses to deduct the Israeli VAT as input tax.
4. Obtaining Allocation Numbers:
   • Method: VAT-registered suppliers can obtain these numbers through the Invoice Number Allocation service.
   • Access: This service can be accessed via an API.
   • Integration Options: Suppliers can connect directly from their Enterprise Resource Planning (ERP) systems or use middleware or e-invoicing software provided by accredited providers.