Green Invoice — The Complete Guide

What is a green invoice, when is it required, invoice types, legal requirements, and recommended software.

A green invoice (Cheshbonit Yeruka) is a combined invoice and receipt used by Israeli self-employed workers and businesses. It serves as both proof of a transaction and an official tax document, and issuing one correctly is a legal requirement for every business in Israel.

What Is a Green Invoice?

In Israel, there are two main financial documents: an invoice (Cheshbonit Mas) and a receipt (Kabala). A green invoice combines both into a single document, confirming that a service was provided or a product was sold AND that payment was received. It is called "green" because the original paper forms were printed on green paper.

When Must You Issue a Green Invoice?

Every time you receive payment for goods or services, you must issue a receipt or green invoice. Self-employed workers (both Osek Patur and Osek Mursheh) are required to issue these documents. The document must include your business name and number, the client's details, a description of the service or product, the amount, the date, and — for Osek Mursheh — the VAT amount.

Digital Green Invoices

Israel has been transitioning to digital invoicing. The Tax Authority now requires businesses above certain thresholds to issue electronic invoices through approved software. Many accounting programs and apps in Israel handle green invoice generation automatically, making the process much simpler than the old paper-based system.

Common Mistakes Freelancers Make

Forgetting to issue invoices for small jobs, using incorrect invoice numbering (numbers must be sequential), not keeping copies for your records, and mixing up the invoice date with the payment date. Proper invoicing is essential for accurate tax reporting and avoiding problems during a Tax Authority audit.