Guides for businesses in Israel. In plain language.
Short explanations of invoices, VAT, allocation numbers and opening a business — written to make things clear, not confusing.
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All guides
7 guides found
- Allocation numbers8 min readAllocation numbers: when you need one, how to get it, and what happens without itThe threshold over the years, who it applies to, and what happens to your customer without a number.Read
- Opening a business5 min readExempt or licensed dealer? The differences in one tableVAT, document types, reporting and the turnover ceiling — and how Makor helps exempt dealers.Read
- Invoices and receiptsComing soonTax invoice, receipt or tax invoice-receipt — what to issue and whenThe document types, and what each of them records.
- Invoices and receiptsComing soonDigital invoices: signing, sending and keepingWhat makes a digital document valid, and how to send it to a customer.
- VAT and reportingComing soonVAT reporting, step by stepThe periodic return, the detailed report, and what to prepare before filing.
- ExpensesComing soonKeeping your business expenses in orderCollecting supplier invoices and filing them for the reports.
- ReportsComing soonWhat the unified format is and why you are asked for itThe export file accountants and the Tax Authority work with.
Free calculators
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- VAT calculatorAdd VAT to a price or extract it from a gross amount.
- Freelance hourly rate calculatorCalculate an hourly rate from your income target, expenses and billable hours.
- Break-even calculatorFind the monthly unit sales needed to cover expenses.
- Discount impact calculatorSee how a discount changes unit profit and required sales.
Frequently asked questions
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What is the exempt dealer ceiling?
The annual turnover ceiling for an exempt dealer (osek patur) is updated every year, and the Tax Authority publishes the current amount. If your turnover is getting close, check the current publication or ask your accountant.
When does an invoice need an allocation number?
When you issue a tax invoice or tax invoice-receipt to a business customer for more than ₪5,000 before VAT. The threshold has come down in stages since 2024 — the full details are in the allocation number guide.
How long do I need to keep invoices?
As a rule, business books and documents are kept for at least seven years. In Makor, issued documents are retained for the whole retention period.
Can I issue an invoice without software?
Yes, a paper invoice book is also an option. Software saves the manual bookkeeping, keeps a signed copy of every document, and requests an allocation number at issue time for tax invoices above the threshold.
What is the difference between a receipt and a tax invoice?
A tax invoice records the transaction and its VAT, and a business customer can deduct that VAT on the strength of it. A receipt confirms that a payment was received. A tax invoice-receipt does both in one document.
Rather have someone else remember all this?
Makor checks the allocation threshold and requests an allocation number for every document that needs one — automatically.
This information is general and is not tax advice. Before a decision that affects your business, check with an accountant or tax advisor.