Israel Accelerates Timeline for Mandatory Allocation Numbers in Invoicing
The Knesset Financial Committee has introduced accelerated timelines for Israel’s upcoming allocation number requirements, marking a major development in the country’s e-invoicing and tax transparency measures.
What’s Changing?
Previously scheduled to phase in gradually through 2028, the updated plan now fast-tracks the implementation to ensure faster compliance. Under the proposed new timeline:
- January 2026: Allocation numbers will be required for invoices exceeding 10,000 NIS (approx. €2,450) before VAT.
- June 2026: The threshold lowers to 5,000 NIS (approx. €1,220) before VAT.
Additionally, the VAT reporting threshold is set to decrease to 500,000 NIS by October 2025, further expanding reporting obligations.
Purpose and Next Steps
The goal behind these changes is to reinforce fiscal control, prevent tax evasion, and enable more efficient audits. By mandating allocation numbers on invoices and lowering VAT thresholds, Israeli authorities aim to gain better real-time oversight of taxable activities.
However, these measures are still pending final approval by the Knesset Plenum before they become law.
There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
