VAT ID Verification in Israel: Step-by-Step Process to Check a VAT ID Number Online
Incorrect or unverified Israeli VAT numbers can create serious compliance risks for businesses. An invalid VAT number may result in penalties such as 1% of taxable turnover for late registration, a minimum fine of ILS 350 for inadequate recordkeeping, and delays with the Israel Tax Authority (ITA).
To avoid these issues, businesses must perform VAT ID verification for Israeli numbers and confirm their registration status with the ITA.
This guide provides a clear, step-by-step process to validate Israeli VAT numbers online using official verification tools and Israel Tax Authority systems.
What is an Israeli VAT Number?
An Israeli VAT number is a unique identifier essential to the tax system for businesses registered for Value Added Tax (VAT) in Israel. To ensure compliance with the Israel Tax Authority and maintain accurate records, businesses must regularly perform Israeli VAT number status lookups.
In Israel, a VAT number consists of 9 digits (XXXXXXXXX format) issued by the Israel Tax Authority. It appears on VAT returns, invoices, and official communications with the ITA. Regular validation ensures compliance with Israeli VAT regulations.
Importance of Israeli VAT Numbers for Businesses & Individuals
To ensure business compliance in Israel, it’s recommended to verify Israeli VAT numbers online regularly using official verification tools or Israel Tax Authority systems.
A valid Israeli VAT number is essential for businesses registered for VAT to comply with Israeli tax obligations. VAT registration is mandatory for businesses with an annual turnover exceeding ILS 120,000 (threshold as of 2025). Businesses below this threshold may register voluntarily to claim input VAT credits.
An application must be submitted within 30 days of exceeding the registration threshold. Failure to do so will result in a fine of 1% of the missing VAT plus interest. Non-resident companies must register regardless of the threshold.
Since Israeli penalties include 1% of the tax liability with a minimum penalty of ILS 359 for inadequate recordkeeping and 1% of the taxable turnover amount for late registration, businesses must ensure accurate validation to avoid significant financial consequences.
Note: Israeli VAT rates include an 18% standard rate as of January 1, 2025, increased from 17%, with zero-rated exports and exempt transactions.
Why Verify an Israeli VAT Number?
Israeli VAT ID verification helps businesses stay compliant with Israeli VAT regulations, protect against fraud, and ensure that they can claim VAT refunds and other tax credits without issues from the Israel Tax Authority.
Consequences of Using an Invalid Israeli VAT Number
Using an incorrect or unverified Israeli VAT number can have serious consequences for businesses operating in Israel:
- Late Registration Penalties: 1% of the taxable turnover amount for late VAT registration with the Israel Tax Authority.
- Recordkeeping Penalties: 1% of the tax liability with a minimum penalty of ILS 359 for inadequate VAT records, effective from July 1, 2024.
- Interest Charges: Interest charges apply on missing VAT amounts in addition to the 1% penalty for late registration.
- Late Filing Penalties: Fines and penalties may be applied for late submissions of VAT returns and payments.
- Denied Deductions: Wrong or unverified Israeli VAT numbers can result in denial of valuable tax deductions, VAT refunds, or input tax credits.
- Reputational Damage: Discrepancies in your Israeli VAT number can damage business reputation and credibility in the Israeli market.
Note: Many vendors implement strict due diligence policies requiring Israeli VAT number validation to confirm proper Israel Tax Authority registration.
Israeli VAT Number Format Explained
The format of Israeli VAT numbers follows a specific structure with 9 digits. Understanding this format is crucial for accurate validation and business documentation.
- Standard Israeli VAT Number Format: The VAT number format is XXXXXXXXX, consisting of:
- 9 digits total
- No country code prefix for domestic use
- Issued by the Israel Tax Authority Department of Customs and VAT
- Identification Structure: Israeli VAT numbers are 9-digit identification numbers that can be verified with the Israel Tax Authority.
Examples of Valid Israeli VAT Numbers:
- Standard format: 123456789
- Business format: 234567890
- Alternative format: 345678901
Common Typos in Israeli VAT Numbers
The following are common errors in Israeli VAT numbers that can easily be avoided with regular validation to ensure accuracy of your Israeli Tax identification number:
- Incorrect Digit Count: For example, using 12345678 instead of the correct 123456789 (missing one digit in the 9-digit sequence).
- Format Confusion: Adding country codes or prefixes when not required for domestic Israeli VAT purposes, or including spaces or hyphens within the number sequence.
- Transposed Digits: Switching digits within the 9-digit sequence, which is common during manual data entry.
- Leading Zeros: Omitting leading zeros when the VAT number begins with zero digits.
These typos can easily be avoided with regular Israeli VAT number validation. Additionally, businesses should perform regular Israeli VAT number lookups to confirm validity and active status with the Israel Tax Authority.
Step-by-Step Process to Verify an Israeli VAT Number on Official Portals
In Israel, the process of verifying a VAT number can be done through the Israel Tax Authority Department of Customs and VAT or through official government verification services.
To verify an Israeli VAT number, follow these simple steps:
Step 1: Understand the VAT Number Format
Israeli VAT numbers match the Business Identification Number (BID), a 9-digit code (e.g., 123456789). For incorporated businesses, the first digit is usually 5.
Step 2: Use Official Israeli Company Registers
Check company details through the Israeli Corporations Authority (רשות התאגידים) or other government business registers. These portals provide registration numbers, company names, business sectors, and related information.
Step 3: Check Validity via Trusted VAT Verification Tools
Since Israel is not part of the EU’s VIES system, use third-party tools. These platforms pull real-time data from official Israeli sources for accurate validations.
Step 4: Verify the VAT Number
- Go to the official business register or a trusted verification platform.
- Enter the 9-digit VAT number or company registration number.
- Review the company’s status, name, and VAT registration details.
- Confirm the registration is active and valid.
Step 5: Use API and Monitoring Options
For frequent checks, some providers offer API access and monitoring alerts that track changes in VAT registration status.
Step 6: Perform Additional Validation
Make sure the VAT number is consistently used in all business documents and transactions. Cross-check that it belongs to the correct taxpayer to prevent compliance issues.
Troubleshooting Invalid or Inactive Results
During your Israeli VAT number validation, you may encounter error messages indicating that the number is invalid or inactive. Below is a troubleshooting guide to help resolve common validation errors:
| Error Message | Likely Cause | Quick Fix |
| Invalid or Not Recognized | The Israeli VAT number is not registered in the Israel Tax Authority database or contains formatting errors | Double-check the VAT number for typos, ensure exactly 9 digits, and re-enter |
| Inactive Status | VAT number may have been newly issued or temporarily deactivated | Allow 24-72 hours for processing, or contact the Israel Tax Authority for status confirmation |
| No Record Found | The VAT number is not linked to any active business in the Israeli VAT database | Verify with the Israel Tax Authority or confirm the business is properly registered for VAT |
| Business Details Mismatch | The VAT number doesn’t match the business details in the Israel Tax Authority records | Confirm the registered business name and address match official records with ITA |
| Temporary Service Unavailable | Israel Tax Authority system maintenance or technical issues | Retry validation later or use Israel Tax Authority verification services directly |
The Role of Licensed Tax Agents in Israeli VAT Number Registration & Validation
Licensed tax agents assist businesses with Israeli VAT number validation and registration processes with the Israel Tax Authority. Israeli businesses rely on qualified tax professionals for VAT registration, status verification, resolving discrepancies, and managing complex filings.
Tax agents provide services including filing VAT returns through Israel Tax Authority electronic systems, handling appeals, ensuring regulatory compliance, and offering expert advice on VAT obligations. When selecting an Israeli tax agent, evaluate their credentials, Israel Tax Authority experience, and market reputation.
Israeli VAT Number Validation: Why It Matters for Local Businesses
Israeli VAT number validation is essential for businesses operating in Israel to stay compliant with Israel Tax Authority regulations, avoid substantial penalties, and maintain smooth operations. Ensuring validity is especially important for B2B transactions and cross-border trade.
Validation ensures businesses align with Israeli VAT regulations, preventing issues related to business registration, corporate tax filings, and fraudulent VAT numbers with Israeli suppliers and customers.
Local Israeli businesses dealing with international suppliers must ensure proper validation to avoid regulatory issues and maintain eligibility for VAT refunds through Israel Tax Authority systems.
Bulk & Automated Israeli VAT Number Validation
Manually verifying Israeli VAT numbers can be slow and error-prone for businesses handling large volumes. Commenda simplifies this through automated validation using CSV uploads and a powerful Bulk VAT validation API.
Manual validation involves entering numbers individually through the Israel Tax Authority systems, which is time-consuming and prone to mistakes. Commenda’s API enables real-time validation of hundreds or thousands of Israeli VAT records within seconds.
Commenda offers a simple API for seamless VAT ID verification integration into your existing systems. It delivers 99.9% uptime for uninterrupted validation services and includes specific features for Israel Tax Authority compliance requirements.
Conclusion: Israeli VAT Number Validation Made Simple
Staying compliant in Israel requires more than VAT checks. Commenda streamlines the entire process, from VAT registration and validation to filings with the Israel Tax Authority. With automated bulk validation via CSV or API, our platform ensures speed, accuracy, and full compliance.
Whether registering new tax IDs, validating VAT numbers, or filing returns, Commenda makes Israeli tax compliance simple and reliable. Get a free demo to see how we can optimize your VAT validation process.
FAQs on Israeli VAT Number Validation
Q. What is an Israeli VAT number, and how is it different from a tax registration certificate?
An Israeli VAT number is a unique 9-digit identifier (XXXXXXXXX format) for VAT-registered businesses issued by the Israel Tax Authority. A tax registration certificate confirms enrollment with Israeli tax authorities and includes comprehensive business details.
Q. Why should I verify an Israeli VAT number online before issuing an invoice or purchase order?
Verifying an Israeli VAT number ensures it’s valid and active with the Israel Tax Authority, preventing compliance issues and VAT refund denials. It also protects your business from dealing with non-compliant Israeli entities.
Q. What penalties can my business face for quoting an invalid or inactive Israeli VAT number on tax returns?
You may face penalties of 1% from taxable turnover for late registration, a minimum of ILS 359 for inadequate recordkeeping, plus interest charges on missing VAT amounts. Late filing penalties also apply for submissions beyond deadlines.
Q. How do I check the real-time status of an Israeli VAT number on the official government portal?
You can access the Israel Tax Authority Department of Customs and VAT verification system through their official website. This provides instant validation of Israeli VAT numbers with current registration status.
Q. Can I still claim input tax credit / VAT refund if my Israeli supplier’s VAT number is later canceled?
Yes, if the supplier was validly registered with the Israel Tax Authority at the time of the transaction. Retain proper documentation, including valid invoices and proof of supply for Israel Tax Authority records.
Q. How long does it take for a newly issued Israeli VAT number to appear as “active” in the online lookup tool?
Israeli VAT numbers typically become searchable within 24–72 hours after Israel Tax Authority registration. If delayed, suppliers should contact the Israel Tax Authority to resolve activation issues.
Q. What common errors cause a “No records found” result when validating an Israeli VAT number?
Common issues include incorrect digit count (not exactly 9 digits), transposed digits, missing leading zeros, or entering numbers not yet activated in Israel Tax Authority systems.
Q. Is there a free API or bulk CSV upload option to bulk-verify Israeli VAT numbers for multiple suppliers?
The Israel Tax Authority doesn’t offer bulk tools, but third-party services like Commenda provide both API and CSV upload capabilities for automated, real-time Israeli VAT number validation at scale.
Q. How often should finance teams re-check Israeli supplier VAT numbers to stay compliant with Israel Tax Authority regulations?
Best practice is to re-verify Israeli VAT numbers quarterly or before large payments to ensure supplier status hasn’t changed (deregistration, suspension, or address changes).
Q. Does the official Israeli VAT number validation portal provide historical data on status changes?
No, the Israel Tax Authority portal only shows current Israeli VAT status, not historical records. For audit trails, businesses must maintain internal logs or use tracking-enabled software for compliance.
Q. What data privacy safeguards apply when submitting Israeli VAT number lookups through third-party services like Commenda?
Reputable platforms like Commenda use strict data protection practices and encrypted data transfer to protect your information during Israeli VAT number validation processes.
Q. When is it mandatory to engage a licensed tax agent for Israeli VAT number registration or validation?
While not mandatory for most Israeli businesses, it’s often beneficial for non-residents or complex VAT setups. Licensed agents help ensure correct filing with the Israel Tax Authority and faster resolution of tax queries.
