1. What an allocation number is
An allocation number (מספר הקצאה) is a number the Israel Tax Authority issues for a specific tax invoice, online, at the moment the invoice is issued. It is part of the Authority's invoice model: the business asks for the number, the Authority approves, and the number is then printed on the invoice.
It is not the same as the invoice's own serial number, which your own numbering produces, and it is not a business registration number. Each invoice that needs one gets its own.
2. Why your clients care
A business client who wants to deduct the VAT on your invoice may need that invoice to carry an allocation number, once the amount is above the threshold in force at the time. An invoice without a required number can leave the client unable to claim the deduction, so clients ask for it.
That is why the number matters to you too: a missing number turns into a request to reissue.
3. When a number is required
The rule applies to tax invoices and tax invoice-receipts issued by licensed dealers, and only above a threshold amount. That threshold was lowered in stages, and the sources we read while preparing this page do not all quote the same current figure. We therefore do not print one here.
Where to check: the Tax Authority's own publications on gov.il, or your accountant. Check the date on whatever you read, because an older article may quote an old threshold.
Whether the rule reaches a particular document of yours, for example a receipt, a credit note, or anything you issue as an exempt dealer, depends on your status and the document type. Ask your accountant rather than assuming.
4. How the number is obtained
There are two routes. Accounting software connected to the Tax Authority can request the number for you while you issue the invoice, so you never leave the screen. Or a business can request a number on the Tax Authority's website and type it into the invoice by hand.
Either way the Authority decides: it can approve or refuse. A refused request means the invoice should not go out as it is, which is why a clear message at issue time matters.
5. What to ask the software you use
If you issue invoices from software, check these points before you rely on it:
- Does it request the number automatically when it is required, or must you do it separately?
- What happens when the Authority refuses: does the invoice stay unissued, and does the screen say why?
- Is the number printed on the PDF the client receives?
- Does the document numbering stay gapless, so that a refused request never leaves a hole in your series?
- Can your accountant export the documents, including the allocation numbers, in the format they work with?
6. Common mistakes
Most problems come from the same few habits:
- Relying on a threshold quoted in an old article.
- Issuing an invoice, then asking for the number afterwards, and sending the client a version without it.
- Typing a number from one invoice into another.
- Assuming every document type needs one, or that none does.
7. A sensible routine
Decide with your accountant which of your documents need a number under today's rules. Issue from software that asks for it while you issue, not after. Re-check the threshold when your accountant tells you the rules have changed, and keep the issued PDFs: the number is on the document itself.
Questions people ask
From what amount is an allocation number required?
The amount was lowered in stages and sources differ on the current figure, so it is better checked on the Tax Authority's website or with your accountant than quoted from a guide.
Is the allocation number the same as the invoice number?
No. The invoice number comes from your own gapless series. The allocation number is issued by the Tax Authority for a specific invoice and printed on it.
Does an exempt dealer need one?
That depends on the document and on your status. Do not assume either way; ask your accountant which of your documents the rule covers.
Can I request the number myself?
Yes. A business can request one on the Tax Authority's website, or use software connected to the Authority that requests it while you issue the invoice.
