Invoice Allocation Number: When It Is Required, How to Get It and What Happens Without It
A brief guide for businesses: the updated 2026 threshold, the application process and the implications for tax deductions.
Has a business customer asked for an invoice allocation number? Under Israel's “Israel Invoices” model, this is a nine-digit number assigned by the Israel Tax Authority to a specific tax invoice. It appears alongside the invoice number and can be checked against the invoice details. Tax Authority information.
When is an allocation number required?
Since June 1, 2026, the threshold has been an amount exceeding NIS 5,000 before VAT; from January through May 2026, it was above NIS 10,000. The requirement concerns a tax invoice that includes VAT, issued to a customer registered as an Israeli VAT dealer who requests an allocation number to deduct input VAT. For example, an invoice for NIS 6,000 before VAT exceeds the current threshold. Current thresholds; Requirement conditions.
How do you get the number?
Register for the Tax Authority's digital services and arrange authorizations as needed. Apply through software connected to the service or directly on the Authority's website. Provide the customer's VAT registration number, the invoice number, the amount before VAT and the VAT amount. Once received, include the allocation number on the invoice. The application service is free. Apply.
What happens without it?
When an allocation number is required, an invoice without it does not allow the customer to deduct input VAT. The missing required number may also prevent deduction of the expense for income tax purposes. VAT implications; Expense deductions.
If no number is received, determine whether this is a technical issue or a substantive refusal and follow the Authority's instructions. Include allocation-number checks both when issuing invoices and when processing supplier invoices. Troubleshooting guidance.
Updated October 1, 2026.