Regulation & finance·1 November 2026·4 min read

Computerized cash register: what the law really requires

Start with the documents your business must issue and keep. Check the software, registration, export and allocation numbers separately, based on what your business does.

Sale details and receipt screen from a KupaLi demo business

Choosing a register starts with knowing what your business must do: which records are required, which document you issue, when you issue it and how you keep it. The product name, the screen size or simply being able to print a receipt do not prove that it meets the bookkeeping rules (הוראות ניהול ספרים).

Which requirements apply to your business?

The requirements depend on the type of activity, its size and the rules that apply to it. A retail shop, a service business and a food stall do not necessarily keep the same books. Before choosing a system, ask your accountant for a list of documents and processes that fits your business.

The difference between a receipt, a tax invoice, a transaction invoice (חשבון עסקה) and a delivery note matters more than the label "smart POS". One document is not always a substitute for another. An exemption from VAT is also not a blanket exemption from recording payments and keeping books. See the Israel Tax Authority guide for new businesses (in Hebrew).

What do you check in the software registration?

When registration is required, ask for the registration details and the relevant version, and check them against the official source. The Israel Tax Authority makes clear that a registration certificate does not confirm that the software works correctly or that it meets every bookkeeping rule.

The page on registering software for a computerized accounting system also explains the role of the uniform-format (מבנה אחיד) export. Being able to download a report or a CSV file is not, on its own, proof of an export in the required format. Ask for a sample file and check it with your accountant.

What is the allocation number threshold in September 2026?

Since 1 June 2026, the threshold in the "Israel Invoices" model (חשבוניות ישראל) is an amount above ₪5,000 before VAT. An allocation number (מספר הקצאה) is required as a condition for deducting input VAT on the relevant tax invoices issued to customers registered as a licensed dealer (עוסק מורשה). From 1 January to 31 May 2026 the threshold was ₪10,000.

This change is already in force, not a future one. It does not mean that every receipt to a private customer needs an allocation number. Check the type of invoice, customer and transaction using the allocation number request service and the Israel Tax Authority's explanation of Israel Invoices.

If you use software that is not connected to the service, you can, with the right permissions, apply through the Authority's online application. Do not conclude from this that your register gets an allocation number automatically. On the purchasing side, you can use the supplier invoice verification service.

What do you check during the trial period?

  1. Sale: which document is issued, which business details appear on it and how the customer receives it.
  2. Correction: what happens with a return or a cancellation, who is allowed to do them and what record remains.
  3. Closing: matching sales, payment methods and the cash count.
  4. Export: which data comes out, in what format and whether you can check it outside the system.
  5. Disconnection: what you are allowed to do without a connection and how the records are completed when the network is back.

Test a full process, not just a list of features. When a card payment is taken on an external terminal, it is important to match the approval from the device to the sale record. A report from the card processor does not automatically replace the business's own documents.

What do you keep if you switch systems?

Before signing up, find out which data can be exported, who can request it and what happens to access after the service ends. Agree with your accountant on the retention period for each document type and on the archive format. A backup at the provider and a copy you hold yourself are not the same thing.

Every so often, check that a report or file exported from the system actually opens and includes the detail you need. A file nobody has checked is not yet a proven recovery process.

How does this relate to KupaLi?

KupaLi is registered in the Tax Authority's software registry. During the KupaLi trial period you can check: a sale and a receipt, a return, closing a shift, and a uniform-format export for your accountant.

For step-by-step use, see the register guide. For plan terms, go to the pricing page. Selling at a market or a fair? Continue to the register checks for a stall.

This information was checked on 6 September 2026 and is general.

Want to try this on the register? Start 14 days free on Register, no credit card.

What else do people ask?

Is the allocation number threshold still ₪10,000?

No. According to the Israel Tax Authority, since 1 June 2026 the threshold is an amount above ₪5,000 before VAT, for the invoices and circumstances relevant to the model. ₪10,000 was the threshold at the start of 2026.

Does every receipt to a private customer need an allocation number?

No. The model covers allocation numbers for relevant tax invoices to customers registered as a licensed dealer, as a condition for deducting input VAT. Check the type of document and transaction.

Does a software registration certificate prove that every requirement is met?

No. The Israel Tax Authority makes clear that the registration certificate does not confirm that the software works correctly or meets the bookkeeping rules. Also check the version, the documents and the actual processes.