Ensure VAT Compliance with Your Invoices
To ensure your invoices meet Israeli tax regulations, prioritize features that support the country's Value Added Tax (VAT) system. The standard VAT rate in Israel is 18%, effective January 1, 2025. Your invoice generator must accurately calculate and display this.
- VAT Rate Application: Automatically apply the 18% VAT rate to taxable goods and services.
- Mandatory Fields: Ensure invoices include the supplier's and customer's full name and address, the supplier's VAT number, the invoice date, and clearly state "Tax Invoice" and "Authorized Entrepreneur."
- E-invoicing Clearance: For B2B transactions exceeding specific thresholds (NIS 10,000 from January 1, 2026, and NIS 5,000 from June 1, 2026), the system must facilitate obtaining an "allocation number" from the Israel Tax Authority (ITA) by submitting invoice data in JSON format. This allocation number is crucial for the invoice's validity and the buyer's VAT deduction.
- Archiving: Digital archiving of invoices for at least seven years is a legal requirement.