Start with your business type
An exempt dealer (עוסק פטור) generally issues a receipt. A licensed dealer (עוסק מורשה) issues tax invoices and may combine them with a receipt. A company has the same obligations as a licensed dealer. The type is set when you register with the tax authorities, and it decides which documents are available to you.
The documents, in one line each
- Tax invoice (חשבונית מס): records a sale and the VAT on it.
- Receipt (קבלה): records that money was received.
- Invoice-receipt (חשבונית מס קבלה): a sale and its payment in one document, the usual choice when the client pays at the visit.
- Credit note (חשבונית זיכוי): reverses all or part of an earlier invoice, for a refund or a correction.
Numbering must be unbroken
Documents are numbered in an unbroken sequence. You cannot delete an issued document or skip a number; a mistake is corrected with a credit note. Software that issues documents for you should guarantee the sequence.
Allocation numbers
For tax invoices above a threshold, a business must obtain an allocation number (מספר הקצאה) from the tax authority before the invoice is valid for the client's VAT deduction. The threshold has been lowered in stages, so check the current figure rather than relying on an old article. Good software requests the number for you at the moment of issue.
The uniform file
The tax authority can ask a business to produce its records in a standard format, the uniform file (מבנה אחיד). Software that stores documents in a structured way can generate it on request, which is far easier than rebuilding it from spreadsheets.
What to look for in software
Look for the documents your business type needs, gapless numbering, allocation numbers handled automatically, PDFs your client can verify, and an export your accountant can use.
Questions people ask
Can I issue the invoice straight from the appointment?
Yes, in software that links visits to documents. That removes retyping and keeps the amount, the client and the date consistent.
What if I issued a document by mistake?
Do not delete it. Issue a credit note and, if needed, a new correct document.
Is this tax advice?
No. It is a general overview. Rules and thresholds change, so confirm with your accountant.
