The Israeli Tax Authority has issued VAT Implementation Order 01/2025, confirming the accelerated implementation timeline for the invoice allocation number system under the Israeli CTC (Continuous Transaction Controls) Invoice Model. The new order validates the expedited thresholds established earlier in 2025 by the Law for Achieving Budgetary Goals and Implementing Economic Policy for the 2025 Fiscal Year.
What has Changed
The Tax Authority has officially confirmed a significantly accelerated rollout schedule. This means that the NIS 15,000 threshold will be skipped, and:
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From 1 January 2026: businesses will need to obtain allocation numbers for invoices of NIS 10,000 (approx. €2,500) or more (VAT excluded)
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From 1 June 2026: businesses will need to obtain allocation numbers for invoices of NIS 5,000 (approx. €1,250) or more (VAT excluded)
This represents a major acceleration compared to the original 2024 timeline, reaching the final NIS 5,000 threshold significantly earlier than the 2028 deadline that was initially planned.
Business Impact
Under the Israeli CTC Invoice Model, businesses must obtain a 9-digit allocation number from the Tax Authority before issuing tax invoices that:
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Exceed the applicable threshold amount (excluding VAT)
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Include a VAT component
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Are issued to a registered dealer who requests the allocation number
The allocation number is a mandatory requirement for the recipient to claim input VAT deduction. Since 1 January 2025, all allocation number requests are subject to review by the Tax Authority before approval.
To learn more about the Israeli CTC obligation and e-invoicing requirements, access our Sovos dedicated webpage.
For future updates on Israel and similar developments in other countries, follow our Regulatory Analysis page.
