No allocation number, no deduction.
From 1 January 2026 every Israeli tax invoice above NIS 10,000 (~€2,500) excluding VAT (Value Added Tax) must carry a real-time allocation number issued by SHAAM, the tax authority's computing platform. From 1 June 2026 the floor halves to NIS 5,000. Without a valid allocation number the buyer cannot deduct input VAT, so the invoice is paper.
01The pain
Six thousand shekels, rejected. From 1 June 2026 a one-day legal retainer at NIS 5,000 (roughly €1,250) excluding VAT (Value Added Tax) requires an online round-trip to SHAAM (שע״מ, the Israeli tax authority's computing platform) before the tax invoice can be issued. From 1 January 2026 the threshold is NIS 10,000 (~€2,500); five months later it halves. Without a valid allocation number — מספר הקצאה (mispar haktza'a) — the buyer cannot deduct input VAT, so the invoice is paper.1,2
Israel has roughly 600,000 licensed sole traders, called osek (עוסק), the Hebrew tax-status term for a self-employed business. VAT Implementation Order 01/2025 pulls the NIS 5,000 floor years ahead of the original 2028 plan. The 2025 threshold was NIS 20,000; 2026 halves it twice. The pain concentrates on operators still on manual ledgers or older accounting software, who must request each allocation number by hand from the Israel Tax Authority portal, one online form per invoice, before the receipt prints.2,3
The system can refuse the number for "irregular activity," with appeal handled via online hearing within two business days. A bathroom contractor in Petah Tikva, a one-day retainer in Haifa, a restaurant supply order in Beer Sheva: all now route through SHAAM before the invoice clears. The 5K floor was due in 2028. It arrives in June.1,4
Further reading
- 1 Herzog Fox & Neeman — Overview of VAT and customs updates effective in 2026 (English): herzoglaw.co.il
- 2 VATupdate — Israel to lower invoice-allocation-number thresholds further in 2026 (English): vatupdate.com
- 3 Ynet — coverage of the 2026 allocation-number threshold drop, including the Morning (Green Invoice) product-manager quote (Hebrew): ynet.co.il
- 4 Morning (Green Invoice) Magazine — practitioner explainer on the מספר הקצאה / Israel-invoice flow (Hebrew): greeninvoice.co.il
02Who solves this today
Two Israel-active vendors that name the SHAAM allocation-number flow on their own front pages — invoicing platforms wired into the Israel Tax Authority real-time API, the route a sole trader actually takes when the manual ledger runs out. Each was checked live on the date of writing. The list is intentionally narrow.
Listed providers publicly market to the Israel SHAAM allocation-number / חשבוניות ישראל / VAT Implementation Order 01/2025 niche on their own homepages. Inclusion is not endorsement. Adjacent Israel-active vendors were considered and excluded where their public homepage did not explicitly name the niche at the date of writing — iCount (icount.co.il) returned HTTP 403 (Cloudflare bot block) on every attempt and could not be verified against the named-niche-on-homepage rule, so it was dropped pending a re-check; Rivhit (rivhit.co.il) returned HTTP 200 but the homepage promoted accounting, payroll, credit-card processing and online invoicing without naming the SHAAM allocation-number flow at the front-page level, so it was dropped per the named-niche rule; EZcount (ezcount.co.il) returned HTTP 200 but the homepage covered invoicing, receipts and credit-card processing without naming SHAAM or the מספר הקצאה flow, so it was dropped; Hashavshevet / H-ERP (h-erp.co.il) returned HTTP 200 but the homepage covered ERP modules and product offerings without naming SHAAM or the allocation-number flow at the front-page level, so it was dropped; Hashavim / Ofek (hashavim.co.il) returned HTTP 200 but the homepage promoted accountant and tax-consultant tools without naming the SHAAM allocation-number flow, so it was dropped; SUMIT (sumit.co.il) returned HTTP 200 but the homepage referenced general tax-authority registration without naming the SHAAM allocation-number flow specifically, so it was dropped; Cardcom (cardcom.solutions) returned HTTP 200 but the homepage covered payment processing and digital invoices without naming the allocation-number flow, so it was dropped; Priority Software (priority-software.com) and Hilan (hilan.co.il) returned HTTP 200 but their homepages emphasised cloud-ERP and HR/payroll respectively without naming the SHAAM allocation-number niche, so both were dropped per the named-niche-on-homepage rule. Herzog Fox & Neeman, VATupdate, Ynet and Morning (Green Invoice) Magazine are referenced in section 01 as advisory / trade-press citations rather than homepage-self-marketed solution providers. The Israel Tax Authority's own SHAAM portal is the regulator-published mechanic and is referenced in section 01 rather than listed as a third-party solution.
Listed companies — manage your entry. If you are one of the providers above and anything here is wrong, missing, or out of date — or you'd rather not be listed — write to us. Removal within 24 hours; corrections within 7 business days. We do not contact listed companies first; we publish what your own public marketing claims and respond when you reach out. Email contact@aikraft.com.