- Israel is expanding its mandatory e-invoicing model, lowering transaction thresholds for requiring an ITA-issued allocation number on B2B invoices.
- New thresholds: NIS 10,000 from January 1, 2026, and NIS 5,000 from June 1, 2026.
- Customers can only deduct input VAT if the invoice contains a valid allocation number.
- Suppliers must request allocation numbers from the ITA’s platform for qualifying transactions; real-time validation and possible denial apply.
- Businesses must update ERP/accounting systems for integration, adapt invoicing processes, verify allocation numbers on incoming invoices, and register for ITA digital services.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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