Israel — ITA real-time clearance · allocation numbers

ITA allocation-number clearance · accelerated 2026 thresholds — regulator: Israel Tax Authority. Facts last refreshed: 2026-05-05.

TL;DR

• Israel runs a clearance CTC model: every B2B invoice above the threshold must be cleared by the Israel Tax Authority (ITA) before delivery.
• Clearance returns an allocation number — without it the buyer cannot deduct input VAT.
• Threshold timeline (accelerated in late 2025): NIS 25,000 (May 2024) → NIS 20,000 (Jan 2025) → NIS 10,000 (Jan 2026) → NIS 5,000 (Jun 2026).
• Format is JSON over the ITA's SHAAM API; no Peppol involvement.
• Flowie obtains the allocation number synchronously and stamps it onto the invoice you deliver to the buyer.

Deadlines

Background

Israel introduced a centralised clearance regime in May 2024 to combat VAT fraud (estimated at NIS 6 bn/year). The mechanism is simple but unforgiving: before a B2B invoice can be issued above the threshold, the seller submits the invoice in JSON to the ITA's SHAAM platform, which validates it in real time and returns an allocation number. Only an invoice carrying a valid allocation number lets the buyer claim input VAT — so commercially, no allocation = no payment.

The original plan staged the threshold reduction over four years (down to NIS 5,000 by 2028). In December 2025, the ITA accelerated the schedule: NIS 10,000 from January 2026, NIS 5,000 from June 2026. By mid-2026, effectively every B2B invoice in Israel goes through clearance.

Flowie integrates with SHAAM directly. The /v1/documents/send call returns the allocation number on the response, and the printable PDF carries it under the seller TIN.

Format profile

• JSON per the ITA technical specification (no UBL).
• Seller and buyer TIN (9-digit identifier, sometimes called Osek) mandatory.
• Threshold compares the invoice net of VAT — invoices below the threshold are out of scope of clearance.
• Cleared invoice carries the allocation number in a dedicated field; the buyer's accounting system uses it to claim input VAT.

Required fields

• seller.tinstring (9 digits)required

  Israeli TIN / Osek number.

• buyer.tinstring (9 digits)required for B2B

  Buyer TIN; without it the invoice cannot clear.

• invoice.allocationNumberstringreturned by ITA

  Allocation number echoed back on clearance; must be embedded in the invoice delivered to the buyer.

Public sector (B2G)

Combined private + public flow — no dedicated B2G hub for this country.

B2B reporting / clearance

Israel Tax Authority — SHAAM — Real-time clearance of every B2B invoice above the threshold. Invoice not deductible by the buyer until allocation number is issued.

Error codes

Generic Peppol BIS schematron error codes apply (BR-*, EN16931-*); no country-specific overlays.

Testing in sandbox

FAQ

What about invoices below the threshold?

They don't go through clearance and don't carry an allocation number. The buyer can still deduct input VAT under standard rules. But once you cross the threshold (NIS 5,000 from June 2026), clearance becomes mandatory.

References

Primary sources (government / regulator / standards body):

• Israel Tax Authority (English) — ITA — tax authority owning the CTC mandate.

Industry analyses (vendor trackers — useful for cross-referencing):

• Sovos · Israel CTC accelerated timeline (Dec 2025) — Industry analysis — accelerated 2026 thresholds.
• Pagero · Israel compliance — Industry tracker.
• EDICOM · Israel CTC clearance model — Industry analysis — SHAAM / allocation numbers.