Key Features for Israeli Compliance
An essential invoice app for Israel must support the country's unique tax compliance requirements, particularly the e-invoicing mandate. Businesses are required to obtain a unique 9-digit allocation number from the Israel Tax Authority (ITA) via the SHAAM platform before issuing B2B tax invoices above specific thresholds. Without this allocation number, the invoice recipient cannot claim input VAT deduction. The thresholds for this mandate are decreasing: NIS 20,000 (pre-VAT) in 2025, NIS 10,000 from January 1, 2026, and NIS 5,000 from June 1, 2026.
Additionally, ensure the app accurately calculates and reports the standard VAT rate, which increased from 17% to 18% on January 1, 2025. The app should also support generating invoices in the required JSON format for ITA submission and securely archiving them for at least seven years.