Key Components of a Compliant Israeli Invoice
To ensure legal compliance, an Israeli invoice, particularly a tax invoice, must include specific details. For B2B transactions exceeding certain thresholds, an "allocation number" from the Israel Tax Authority (ITA) is mandatory for the buyer to deduct input VAT. This e-invoicing mandate began in May 2024 for invoices over NIS 25,000, decreasing to NIS 20,000 from January 1, 2025, NIS 10,000 from January 1, 2026, and NIS 5,000 from June 1, 2026.
- Supplier and Customer Information: Full names (including trading names), addresses, and the supplier's VAT registration number. It's also recommended, and mandatory for business customers on transactions over NIS 5,000 before VAT from November 2025, to include the customer's VAT registration number.
- Invoice Details: The words "Tax Invoice" and "Authorized Entrepreneur," the invoice date, and the word "original" printed only on the original.
- Transaction Breakdown: A clear description of goods or services, quantities, the taxable amount (excluding VAT), the VAT amount, the applicable VAT rate (currently 17%, increasing to 18% from January 1, 2025), and the total gross amount.
- Allocation Number: For mandatory e-invoices, this unique identifier issued by the ITA must be present on the invoice to validate VAT deduction.
For customs clearance, a commercial invoice additionally requires the country of origin, Harmonized System (HS) codes, detailed goods descriptions, and shipping terms (Incoterms).