Israeli E-Invoice

Instructions

Step 1: Determine Invoice Type

Step 2: Collect Required Fields

• Seller details: Business name, TIN (mispar osek), address, phone
• Buyer details: Business name (or individual), TIN (if B2B), address
• Transaction: Date, item descriptions, quantities, unit prices
• Payment: Method (cash, transfer, check, credit card), terms

Step 3: Calculate VAT

• Standard Israeli VAT rate: Always verify current rate with the Tax Authority (standard rate is 17% as of 2024-2026, but rates may change)
• VAT calculation:

  vat_amount = net_amount * vat_rate

• Total:

  gross_amount = net_amount + vat_amount

• For VAT-exempt transactions (osek patur), no VAT line -- use receipt (320) instead

Step 4: Check Allocation Number Requirement

• Required if: Invoice amount >= current threshold AND invoice type is 300, 305, or 310
• Current thresholds: Always verify current thresholds with the Tax Authority, as requirements change over time
• Not required for: Receipts (320), proforma (330), invoices below threshold

1. Inform user they must request from SHAAM before issuing
2. Provide the API call structure (see references/shaam-api-reference.md)
3. The allocation number must appear on the printed/sent invoice

Step 5: Generate Invoice Document

• Date in both Gregorian (DD/MM/YYYY) and Hebrew calendar
• Amounts in NIS (New Israeli Shekel)
• VAT breakdown as separate line
• Sequential invoice number from seller's series
• Allocation number (if applicable)

Step 6: Validate

1. All required fields present
2. TIN format valid (9 digits with check digit)
3. VAT calculation correct
4. Invoice number sequential
5. Date not in the future
6. Allocation number present if above threshold

Examples

Example 1: Simple B2B Tax Invoice

1. Identify: Tax Invoice (type 300), above threshold -- allocation needed
2. Collect: Seller and buyer details
3. Calculate: Net 15,000 + VAT (at current rate) = Total amount
4. Guide: Request allocation number from SHAAM
5. Generate: Formatted invoice document Result: Complete tax invoice with all required fields and allocation number guidance

Example 2: Small B2C Receipt

1. Identify: Receipt (type 320), below threshold -- no allocation needed
2. Collect: Seller and buyer details
3. Generate: Receipt document Result: Simple receipt, no allocation number required

Example 3: Credit Invoice for Refund

1. Identify: Credit Invoice (type 310)
2. Reference: Original invoice #1234
3. Calculate: Credit amount with VAT reversal
4. Check: Allocation requirement based on amount Result: Credit invoice referencing original, with correct VAT reversal

Bundled Resources

Scripts

• scripts/validate_invoice.py

  — Validates Israeli e-invoice JSON against SHAAM requirements: checks required fields, TIN (mispar osek) format and check digit, invoice type codes, VAT calculation accuracy, and allocation number thresholds. Also referenced in Troubleshooting below. Run:

  python scripts/validate_invoice.py --help

References

• references/shaam-api-reference.md

  — SHAAM (Tax Authority) API endpoints for requesting allocation numbers, OAuth2 authentication setup, and request/response formats. Consult when integrating with the SHAAM e-invoice API. Also referenced in Step 4 above.

• references/invoice-types.md

  — Complete listing of Israeli invoice type codes (300, 305, 310, 320, 330, 400) with required fields per type, VAT applicability, and allocation number requirements. Consult when determining which invoice type to use.

• references/compliance-timeline.md

  — Progressive e-invoice mandate timeline per Amendment 157 to the VAT Law, showing threshold reductions from 25,000 NIS down to all invoices. Consult when checking current allocation number thresholds.

Gotchas

• Israeli e-invoices require a SHAAM allocation number (mispar hiktza'a) from the Tax Authority. Agents may generate invoices without this number, making them non-compliant.
• The e-invoice XML schema follows the Israeli Tax Authority specification, not the European Peppol or UBL standard. Agents may generate UBL-formatted XML that Israeli systems cannot process.
• Starting from 2024, Israeli businesses above the turnover threshold must issue e-invoices. Agents may not check whether the business meets this threshold before skipping e-invoice requirements.
• The SHAAM system validates the buyer's tax ID (mispar osek) in real-time. Agents may use placeholder or invalid tax IDs that will be rejected by the validation service.

Troubleshooting

Error: "Invalid TIN format"

Error: "Allocation number required"

Error: "VAT rate mismatch"

Error: "Invoice type not suitable"