Until recently, e-invoicing saw limited adoption in Israel, as there were no mandatory requirements in place for B2G, B2B, or B2C transactions.
This changed with the introduction of a phased e-invoicing mandate based on invoice amount by the Israel Tax Authority (ITA):
- May 5, 2024: mandatory for invoices above 25,000 NIS (~€6,250)
- January 1, 2025: mandatory for invoices above 20,000 NIS (~€5,000)
- January 1, 2026: mandatory for invoices above 10,000 NIS (~€2,500)
- June 1, 2026: mandatory for invoices above 5,000 NIS (~€1,250)
The original plan included more phases extending to 2028, but the ITA accelerated the timeline [↗] to strengthen the fight against tax evasion.
Israel has chosen to implement a clearance model, requiring suppliers to submit invoice data to the government’s SHAAM central platform for validation, either via an API in JSON format, or manually via a web portal. Once approved (“cleared”), the invoice receives a unique Allocation Number, which must be displayed on the document. After this clearance step, suppliers may send the invoice to customers in any preferred format, including paper or PDF.
This approach, combining a clearance model and a phased obligation starting with high-value invoices, aims to minimize the burden on smaller businesses, many of which can continue issuing invoices without dedicated e-invoicing software, while giving the ITA comprehensive traceability to fight fraud.
However, it also significantly limits automation, as invoices are not exchanged in structured formats and therefore require continued manual processing, preventing companies from taking advantage of the usual benefits of end-to-end automation.
Israel Country Profile
Learn more by visiting our detailed Israel Country Profile, featuring:
- Summaries of the B2B e-invoicing obligation in Israel
- Timeline of the main e-invoicing milestones
- Access to resources such as some of the technical specifications
- More detailed technical explanations
Additionally, visit The Invoicing Hub regularly to read the latest relevant news regarding e-invoicing in Israel, and to remain updated about the latest developments and the expected clarifications.
