Israel ends the allocation-number pilot and lowers the threshold to NIS 20,000 for 2025

What changed in detail

Section 38 of Israel’s Economic Efficiency Law 5783-2023 (Sefer HaChukim 3045) set a stepped schedule for the allocation-number threshold, but section 38(d) made everything after the 2024 pilot conditional: the Minister of Finance, with Knesset Finance Committee approval, could either extend the pilot by one year or order that section 38(a) and (b) apply; if neither was done by 31 December 2024, those subsections would lapse.

The Minister asked the Committee to approve such an order on 31 October 2024. The Committee approved the order applying section 38(a) and (b) on 20 November 2024. As explained to the Committee, the order ends the pilot and moves to the stepped schedule already in the law.

The order does not itself set a figure. The figure is statutory: under section 38(b)(1), from 1 January 2025 to 31 December 2025 the threshold in section 38(a1) of the VAT Law is read as NIS 20,000 instead of NIS 5,000, before VAT. With the pilot over, the Tax Authority may also refuse to allocate a number, subject to the hearing and objection procedure in the law. The order’s Reshumot reference and publication date could not be confirmed from an official text.

What it means

This threshold is spent. NIS 20,000 applied to invoices issued in 2025, replacing the NIS 25,000 pilot threshold of 2024. The original schedule would have gone to NIS 15,000 in 2026; the 2025 Budget Arrangements Law instead set NIS 10,000 from 1 January 2026 and the base NIS 5,000 from 1 June 2026, which is the current threshold.

The more lasting change in this step is the end of the pilot: from 2025 the Tax Authority could refuse an allocation number, not merely issue one.