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Invoice Software for Israel

Harvest excels in helping businesses efficiently track time and expenses to generate invoices, but does not specifically cater to Israel's unique invoicing requirements.

INVOICE DRAFT

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Item type
Description
Quantity
Unit price
Tax
Amount
Subtotal
$0.00
Discount
$0.00
Amount Due
$0.00
Get paid via:
Credit card / Debit card
ACH
Wire transfer
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Invoice settings

Tax Add up to 2 tax rates
%
Discount Apply a discount percentage
%

Key Features for Israeli Tax Compliance

For businesses in Israel, selecting invoicing software means prioritizing features that ensure compliance with the Israel Tax Authority (ITA) regulations. The core requirement is mandatory e-invoicing compliance for Business-to-Business (B2B) transactions exceeding specific thresholds, which are being phased in. Your software must support real-time invoice submission and validation to the ITA's SHAAM platform, where each invoice receives a unique "allocation number" for VAT deduction purposes before it's sent to the buyer. This process is critical, as invoices without this number, when required, are not valid for VAT deduction. Furthermore, the software needs to generate invoices in the specific JSON format for submission to the ITA. While the ITA's allocation number serves as the primary authenticity mechanism, some sources indicate that digital signatures on invoices are also required for authentication and fraud prevention.

Selecting Software for Electronic Invoicing

Choosing the right electronic invoicing software for Israel involves understanding the country's unique Continuous Transaction Control (CTC) model. This clearance model means invoices are pre-approved by the ITA in real-time before they are legally valid for VAT deduction. It's crucial to differentiate between B2B vs. B2C invoicing requirements; currently, mandatory e-invoicing applies only to domestic B2B transactions above set thresholds. B2C and Business-to-Government (B2G) transactions are generally excluded from this mandate. The gradual implementation schedule for e-invoicing is also a key consideration:

  • Mandatory for invoices over NIS 25,000 since May 5, 2024.
  • Mandatory for invoices over NIS 20,000 since January 1, 2025.
  • Mandatory for invoices over NIS 10,000 from January 1, 2026.
  • Mandatory for invoices over NIS 5,000 from June 1, 2026.

Avoiding Common Pitfalls in Invoicing Software

When selecting invoicing software, don't overlook practical considerations that can become significant pitfalls. First, ensure the software can meet the archiving requirements for electronic invoices, which must be retained for at least 7 years according to Israeli law. Reviewing user reviews and experiences is also crucial, as they provide insights into the software's reliability and customer support. Additionally, consider cost considerations, such as the benefits and limitations of free versus paid software options, to ensure the solution fits your budget without compromising on necessary features.

See Your Israeli Invoice Template in Action

Preview how your invoice will align with Israeli tax regulations, including JSON formats and digital signatures for authenticity.

Invoice Software for Israel FAQs

  • The Israeli Tax Authority requires invoices to be submitted in a specific JSON format for compliance. This format facilitates the real-time submission and validation process needed for legal VAT deductions. The JSON format ensures that all necessary data fields are captured and standardized for processing by the ITA systems.
  • Yes, invoicing software can be designed to handle the Continuous Transaction Control (CTC) model by integrating real-time submission capabilities. This allows invoices to be pre-approved by the tax authority before they are issued to clients, ensuring compliance with legal requirements and facilitating automatic VAT deductions.
  • Yes, Harvest offers a mobile app for both iOS and Android devices, allowing users to manage invoices, track time, and monitor project progress while on the go. This feature ensures you can stay connected and productive anywhere.
  • Free invoicing software often comes with limitations such as restricted features and lower customization capabilities. These versions may not fully support compliance with complex local tax regulations like those in Israel. Additionally, free software might lack robust customer support and advanced security features, which are crucial for handling sensitive financial data.
  • Digital signatures on electronic invoices in Israel serve as a tool for verifying the authenticity and integrity of the document. They provide a layer of security that assures both the issuer and the recipient that the invoice has not been altered post-signature. The digital signatures are typically cryptographic in nature, ensuring that each signature is unique to the document and the signing party.