What is an allocation number for an invoice?
What you will learn
Explain why an internal invoice number is not necessarily an allocation number.
An allocation number is a number from the Tax Authority in the context of Israeli invoices, in addition to the business's invoice number.
As of 13.9.2026, effective 1.6.2026 the threshold is 5,000 ₪ before VAT: for tax invoices exceeding it that are included in the model an allocation number is required as a condition for input tax deduction by the customer. This is a tax condition, not proof that the customer paid and not a guarantee that the expense is deductible. There are conditions, exceptions and handling procedures; one should not infer that every receipt to a consumer requires an allocation. The threshold and the rules may change and should be checked with the Tax Authority.
A tax invoice of 6,000 ₪ before VAT crosses the 5,000 ₪ threshold. Check the applicability of the model and the allocation number; do not calculate the threshold based on the total amount including VAT.
Explain why an internal invoice number is not necessarily an allocation number.
Official information and further reading ↗Check your understanding
According to which amount do you check the described threshold?
- Including VAT
- Before VAT
- According to the business's profit
Answer and explanation
Before VAT. The threshold in the model is measured before VAT.
Does an allocation number prove that the customer paid?
- Yes
- Only in a company
- No
Answer and explanation
No. The number is related to the tax model and not to documentation of payment receipt.
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