Israel Tax Agency Clarifies Requirements for Allocating Taxpayer VAT Invoice Numbers

The Israeli Tax Authority Dec. 7 posted VAT Execution Directive No. 01/2025, clarifying the requirement for allocating taxpayer VAT invoice numbers. Topics covered include: 1) that, to qualify for input tax deductions, tax invoice numbers must be included on invoices exceeding 20,000 Israeli shekels (US$6,216) in 2025, 10,000 shekels (US$3,108) from Jan. 1, 2026, and 5,000 shekels (US$1,554) from June 1, 2026; 2) instructions for obtaining allocation numbers via the agency’s identification system and web application; 3) refusal cases, dealer notifications, alternatives, and appeal rights; 4) services for invoice recipients, including verification and data import; and 5) special rules for ...