How to invoice in Israel
Israel's tax invoice ("חשבונית מס") must carry the supplier's name and Osek Murshe/company number, a sequential invoice number, the date, a description of the goods or services, and the amount with VAT shown separately at 18%. For domestic B2B invoices above the current value threshold you must first obtain an allocation number from the Israel Tax Authority and print it on the invoice, otherwise the buyer cannot deduct the input VAT. Exports of goods and services to non-residents are generally zero-rated.
| Israel at a glance | Detail |
|---|---|
| Currency | ILS (₪) |
| Standard VAT | 18% |
| Tax ID | Company/VAT No. (ח.פ.) |
| Paper size | A4 |
| Typical terms | Net 30 |
| E-invoicing | Phasing in |
Tax ID format: A 9-digit company number (ח.פ.) or Osek Murshe/self-employed number, e.g. 514789203.
What Israeli invoices must include
- The word “Invoice” and a unique, sequential invoice number
- The issue date (and the supply date if it differs)
- Your business name, address and Company/VAT No. (ח.פ.)
- The client's name and address (and their Company/VAT No. (ח.פ.) where the local rules require it)
- A clear description and quantity for each line
- The net amount per VAT rate, the rate(s) applied and the VAT amount
- The total payable, in ILS
- Payment terms, the due date and how to pay (bank name and account number or IBAN)
- Allocation number (מספר הקצאה) for B2B invoices above the tax-authority threshold
- Supplier Osek Murshe / company number
- The heading חשבונית מס (Tax Invoice)
VAT notes
Invoice Forever offers ready-made Israeli VAT notes such as:
- VAT charged at 18% in accordance with the Israeli Value Added Tax Law, 5736-1975.
- Zero-rated (0%) export of goods or services to a non-resident under Section 30 of the Israeli VAT Law.
- Invoice includes an Israel Tax Authority allocation number (מספר הקצאה) where required; the buyer needs it to deduct input VAT.
E-invoicing in Israel
Israel's Tax Authority runs a real-time clearance (CTC) model built on an allocation number (מספר הקצאה): before issuing a domestic B2B tax invoice above a value threshold the supplier must transmit the invoice data (JSON) and receive an allocation number, which the buyer needs to deduct input VAT. The threshold started at ILS 25,000 in May 2024 and was lowered to ILS 20,000 on 1 January 2025, ILS 10,000 on 1 January 2026 and ILS 5,000 on 1 June 2026 (amounts before VAT).
Invoice Forever can export a structured EN 16931 (UBL) e-invoice alongside the PDF (beta) — the format most of these mandates are built on. You still send it via your own access point, and some countries require their own national format.
Verified 11 September 2026 against the source. E-invoicing rules are changing quickly, so always confirm the current position with the Israel Tax Authority (Rashut HaMisim / SHAAM) before you rely on it. This page is general guidance, not tax advice.
Payment terms in Israel
Israeli B2B commonly uses "shotef plus" terms (invoice month-end plus 30, 60 or 90 days); under the Payment to Suppliers Law the default is 45 days unless otherwise agreed. Payment is usually by bank transfer.
Questions about invoicing in Israel
The standard VAT (Ma'am) rate is 18% and remains 18% for 2026; it was raised from 17% to 18% on 1 January 2025. Exports and many services to non-residents are zero-rated, and businesses in Eilat benefit from a VAT exemption.
Yes. A valid tax invoice must show your 9-digit Osek Murshe / company number (ח.פ.), and for the buyer to reclaim VAT the buyer's name and number should also appear.
Israel uses a real-time allocation-number clearance model rather than a document format. Since 1 June 2026, domestic B2B invoices above ILS 5,000 (before VAT) must carry a tax-authority allocation number; smaller invoices do not need one yet.
Make an invoice for Israel, free.
ILS and 18% VAT already set, on A4 paper. No signup, no watermark.