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Update on Israeli Invoicing for businesses and Corporations

Update on Israeli Invoicing for businesses and Corporations


According to the new law, as of May 5, 2024, it will not be possible to offset input tax(Mas Tsumot) from invoices in an amount exceeding NIS 25,000, if the invoice has not received an allocation number from the tax authority. The purpose of the change is to prevent the possibility of distributing fictitious invoices, which is a channel for financing crime and terrorism.

Below is an explanation regarding the new law:

Any licensed Osek who issues an invoice to a customer for an amount exceeding the ceiling (NIS 25,000 in 2024) is obliged to add an allocation number to the invoice in addition to the invoice number.

This is so that the customer can offset the inputs(Mas Tsumot) he paid in that invoice.

What is an allocation number? – A unique number for a specific invoice in a structure of 9 digits, which is received from the tax authority. The allocation number will appear on the invoice in addition to the document number.

  In order to receive an allocation number, you must compleate two steps:

  1. First, you must register for the digital services of the Tax Authority-

            By clicking the link here. for a tutorial video.

            For corporations, register by clicking on the link here. for a tutorial video.

  1. The allocation number can be obtained in one of the following options-
  • By using a software for generating invoices which is connected to the services of the Tax Authorit. You must make sure that the software you are using is indeed connected to the Tax Authority.

      It is important to ask the software company for the latest version.

        Additional notes on the subject:

  1. You can check whether a number printed on an invoice is indeed an allocation number, as well as the matching of the allocation number with the details of the specific invoice in the “Invoice Details Verification” application. Application link.

  1. Invoices with allocation numbers should be in consecutive order (as in the invoice number)

  1. In 2024, every request for an allocation number will be accepted. If an allocation number is not received due to a technical issue, contact the support center of the Tax Authority 4954*

  1. Attached is a link to questions and answers on the subject – questions and answers.
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