An allocation number (mispar haktzaa) is a nine-digit number the Israel Tax Authority assigns to a tax invoice under the Israel Invoices model. The customer needs it to deduct input VAT. The threshold is the invoice amount before VAT: NIS 10,000 from 1 January 2026 and NIS 5,000 from 1 June 2026. The supplier requests the number through connected accounting software or the Tax Authority’s online service.
If your business issues a tax invoice to another VAT-registered business in Israel, the invoice may need an allocation number (in Hebrew, mispar haktzaa). The Tax Authority issues this number in real time. Without it, your customer cannot deduct the input VAT on that invoice. From 1 June 2026, this applies to any tax invoice above NIS 5,000 before VAT. The supplier requests the number, but in practice it is the customer who insists on it.
The Israel Invoices model (Heshboniyot Israel) was introduced by the Economic Efficiency Law of 2023 to fight fictitious invoices. Under the model, the Tax Authority has issued allocation numbers since 1 January 2024. They are issued for tax invoices sent to customers registered as an osek murshe (a VAT-registered dealer). Each number links a specific invoice to a specific supplier, customer and amount. The Tax Authority can then match the output VAT the supplier reports with the input VAT the customer claims.
The allocation number is a condition for deducting input VAT once the invoice amount before VAT is above the legal threshold. According to the Tax Authority's service page and its Israel Invoices FAQ, the threshold has come down in stages:
In 2024 every request was approved automatically. Since 2025, the Tax Authority may refuse a request when there is reasonable suspicion that the invoice is not being issued lawfully.
There are two ways:
An authorized dealer can request the number, and so can anyone they have authorized in the Tax Authority's system for digital actions. That is how a bookkeeper or accountant usually does it for a client.
The number is nine digits long. It is printed on the invoice under the heading "allocation number", in addition to the regular invoice number. It also appears in the customer's personal area on the Tax Authority website, so the customer can confirm it is genuine. A customer can only see invoices issued to their own business.
The FAQ allows a supplier to request the number up to one year after the invoice date. Until the number exists, the customer cannot claim the VAT. If the invoice is dated more than six months back, the customer can claim the input VAT only after asking for an extension of time. For an invoice from a manual book, the supplier gives the number to the customer, and the customer writes it on the original. For a computerized invoice, the supplier may send a copy marked "copy" with the number added. The supplier must not issue a new original document.
Since 2025, in certain cases where a request is refused, the Tax Authority lets the supplier choose a reverse charge (hipuch chiyuv) instead. The supplier issues the invoice with 0% VAT, and the VAT liability for the transaction moves to the customer. The Tax Authority has published guidance and a presentation on this route. It is worth reading them with your accountant before you use it for the first time.
Yes, if you are registered for VAT in Israel. A foreign company with an Israeli VAT file, an Israeli subsidiary, or an oleh working as an osek murshe all issue and receive tax invoices under the same rules. Two practical points:
For more on running an Israeli business day to day in English, see Can I run my Israeli business entirely in English? and taxes for self-employed people in Israel.
If you are setting up invoicing for a new Israeli entity, an English-speaking accountant can check your software and VAT process before the first invoice goes out.
From 1 January 2026 the threshold was NIS 10,000 before VAT. From 1 June 2026 it dropped to NIS 5,000 before VAT, so tax invoices above that amount need an allocation number for the customer to deduct input VAT.
The supplier (or someone they authorized) requests it, either automatically through connected software or through the Tax Authority’s online service. The customer needs it to deduct input VAT and can verify it in their personal area.
No. According to the Tax Authority’s FAQ the allocation number applies only to tax invoices. For a proforma or transaction invoice, the online service can generate an allocation confirmation number for the future transaction.
Yes, up to one year after the invoice date. The customer cannot claim the VAT until the number is issued. If the invoice is older than six months, the customer needs an extension of time to claim it.