The Israel Tax Authority (ITA) published a clarification on June 29, 2026, about the allocation number requirement for transactions between dealers registered in a dealers’ union. As of July 1, 2026, dealers registered under Section 56 of the Value Added Tax (VAT) Law, 5736-1975, must request an allocation number for transactions carried out between members of the union. This follows Section 47(a2) of the law.
Dealers who have not yet made the needed technology changes can issue one consolidated tax invoice per month instead. Each consolidated invoice must include an allocation number and a document listing every transaction it covers. This option is available until July 1, 2027. After that date, each tax invoice between union-member dealers needs its own separate allocation number request.
The consolidated tax invoice includes VAT at the full rate. This clarification applies only to the VAT system.
