On October 26, 2026 the Israel Tax Advisors Association put on YouTube a public conversation from its annual conference between its president, Yaron Gindi, and the director of the Israel Tax Authority, Shai Aharonovich. Near the end, Gindi asked what the detailed VAT report adds if every invoice gets an allocation number from the first shekel. Aharonovich answered: "I estimate that in the next Arrangements Law we will really lower it to zero."
In the context of the conversation, "it" is the amount from which a tax invoice must carry an allocation number. Today that amount is 5,000 shekels before VAT. At zero, every tax invoice to a business customer that deducts VAT would need a number, including an invoice for 300 shekels.
Aharonovich was giving an estimate. He presented no wording, and no bill lowering the threshold below 5,000 has been published. The Arrangements Law passes the Knesset together with the budget, and it usually changes in the Finance Committee before it is approved.
Ahead of the 2024 schedule
The obligation started in May 2024, for invoices above 25,000 shekels. In November 2024 the Finance Committee approved a schedule in which the threshold would drop to 20,000 in 2025, 15,000 in 2026, 10,000 in 2027 and to 5,000 only in 2028. In practice it dropped to 10,000 in January 2026 and to 5,000 in June 2026, about a year and a half ahead of the original date.
A system running at 15% of capacity
In January 2025, at a seminar of the Institute of CPAs, Tax Authority representatives presented figures from the system. An allocation number comes back within 0.2 seconds. On a normal day about 50,000 invoices get a number, and at the end of the month 100,000 to 120,000 a day. According to them that is about 15% of capacity, and the system "can also handle it from the first shekel".
At the same seminar they said 260,000 businesses had already registered, and 95% of requests came from invoicing software. Only 5% were sent by hand through the Tax Authority's web application.
The detailed report came up in the same conversation
Gindi reached the threshold question through a different request. He asked to extend into 2027 the relief for individual dealers with turnover above 500,000 shekels whose invoices are mostly below 5,000, and said about 18,000 relief requests had been filed. Aharonovich answered that the Authority would consider it "very positively".
On October 22, 2026 the head of VAT, Neta Sabah, published a notice extending the relief. An individual dealer with turnover above 500,000 shekels starts filing the detailed report only on January 1, 2028, if at least 90% of their input invoices are up to 5,000 shekels before VAT.
Gindi's argument in the conversation was that once every invoice carries an allocation number, the Authority already holds the data the detailed report sends it. Aharonovich did not commit to scrapping the report.
Businesses that would request a number on every invoice
At a zero threshold, the change is felt by a licensed dealer or company that issues many small invoices to business customers: a consultant on a monthly retainer, a computer technician, an office supplies vendor. Today an invoice for 3,000 shekels goes out without contacting the Authority. At zero it will need a number too, and without one the customer cannot deduct its VAT.
An osek patur does not issue tax invoices, so it is not affected. An invoice to a private customer, who does not deduct VAT, needs no number either.
A business that requests numbers by hand on the Authority's website today, because it has only a few large invoices a month, would have to do it for every invoice. It is worth checking now that your invoicing software requests the number by itself at the moment the invoice is produced and prints it on the document. The allocation number guide explains what the request looks like and what to do when it is refused.