Key Takeaways
- Digital invoices save freelancers time on issuing, sending and tracking payment: the document is issued from a computer or phone, kept in one place, and you can see which clients have not paid yet.
- Under the Income Tax (Bookkeeping) Instructions, an invoice must show, among other things, the business name, address and dealer number, the date, the customer's name, a description of the goods or service, the quantity, the unit price and the total. A tax invoice from an Osek Murshe also shows the VAT amount separately and the buyer's VAT number.
- Often, most of the saving comes from tracking payments: when you see the payment status in one place and send a payment request with a link, you spend less time chasing clients.
- A mistake in an invoice that was already sent is not fixed by editing the document: you issue a credit invoice that refers to the original invoice's number and date and states the reason, and a new invoice if needed.
- In Keep, every plan lets you issue invoices and receipts without limit as digitally signed PDFs, send payment requests and links, charge clients by credit card and bit, and see which clients still owe money. Expense upload by photo or file, and reports and payments to the tax authorities, are in the recommended plan, which costs an Osek Patur 105 shekels a month plus VAT.
What Are Digital Invoices?
Digital invoices are electronic documents that replace traditional printed invoices. Instead of filling out forms by hand, printing, and mailing them, you can generate, send, and manage invoices directly from your computer or phone.
For freelancers like graphic designers, consultants, or e-commerce merchants, this tool frees up valuable time and reduces the stress of financial management. The system shows the status of documents and payments and which clients still owe money, and brings income, expenses and profit together in one place. In Keep, VAT reports are included in the recommended plan; for an Osek Patur, that means the annual turnover declaration.
In Israel, a digital invoice must, among other things, carry the details required by the Income Tax (Bookkeeping) Instructions, including the business name, address and dealer number, the date, the customer's name, a description of the goods or service, the quantity, the unit price and the total. It must also be issued as a computerised document carrying a secure or certified electronic signature. Managing invoices by hand, by contrast, takes hours of printing, sending, and tracking -- time you could invest in growth.
It helps to tell a digital invoice apart from a Word file or a photo of a handwritten invoice. A digital invoice is issued in registered invoicing software with consecutive numbering and kept there so that it cannot be deleted. When it is sent to the client as a signed file, that file is the original, and there is no need to print it.
Time-Saving Advantages That Reduce Stress
Digital invoices offer a range of benefits that simplify small business management:
- Access from anywhere -- Issue an invoice from your computer or the mobile app, at any time.
- Organized records -- All invoices are kept in one place, with the payment status of each document and a view of which clients still owe money.
- Automatic receipts -- When a client pays through a payment request, the receipt is issued automatically.
- Website and shop connections -- Keep offers an API for accepting card payments on your website, and the recommended plan adds Wix and Shopify plugins.
- Professional appearance -- Digitally signed PDF documents with all the transaction details look professional to your clients.
Noa, a 29-year-old freelance graphic designer from Tel Aviv, switched to digital invoices and frees up an hour or two a week. She issues the document from her phone at the end of each job, sees which clients have not paid yet, and puts the time she gains into new projects.
Keeping documents in order also helps you file on time: an Osek Murshe who files a periodic VAT report late pays a fine of 247 shekels for every two weeks of delay or part of them (as of September 2026).
To estimate how much time you could save, count how many documents your business issues a month and how long each one takes: writing, sending, checking whether it was paid and contacting a client who has not paid. Often the biggest saving is not in issuing the document but in tracking payments, so look for a system that shows clearly who has paid and who still owes money.
How the Process Works in Practice
Using digital invoices is simple and designed for freelancers with busy schedules:
- Registration -- Sign up and fill in your basic business details.
- Invoice generation -- Choose the document type, enter the client's details, a description and the amount, and issue a digitally signed PDF.
- Payment request -- Send the client a payment request with a link, and they pay by credit card or bit.
- Tracking and reporting -- See the status of payments and which clients still owe money. Keep's recommended plan also includes VAT reports and a personal accountant for professional guidance.
With manual management each invoice is written, printed and sent separately; in a digital system the document is issued with consecutive numbering and stored in one place. In Keep's recommended plan you can also upload business expenses with one click, as a photo or a file, for example a receipt from an office-supply store. Whether an expense is deductible is decided by the income tax rules, not by the software. An ordinary phone photo does not replace the paper receipt, so the original has to be kept for the full retention period.
If an invoice that was already sent contains a mistake, or the deal changes, you do not edit the original document. You issue a credit invoice that refers to the original invoice's number and date and states the reason, and if needed a new, correct invoice. An Osek Murshe who wants to reduce the VAT already reported also needs proof that the client received the credit invoice.
Practical Tips for Daily Integration
To get the most from digital invoices, here are five tips:
- Dedicate brief daily time -- At the end of each day, spend 10 minutes generating invoices and scanning receipts to prevent buildup.
- Check payments regularly -- A weekly look at which clients still owe money, and a payment request with a link to anyone who is late, save time on manual follow-ups.
- All your numbers in one place -- A dashboard with income, expenses and profit for the period you choose, so you do not have to add up figures from several places.
- Complete details on every invoice -- A clear description of the service or product, the quantity and the price save questions from clients and corrections later.
- Use the support team -- The support team is available for technical questions, and in the recommended plan a personal accountant also helps with professional questions.
Avi, a 37-year-old marketing consultant from Nes Ziona who is registered as an Osek Murshe, bills his business clients a monthly retainer. Since he started applying these tips he saves a few hours a month: he charges the retainer by credit card, checks once a week which clients have not paid yet and sends them a payment request, and the dashboard keeps his income and expenses in one place.
Beyond the 10 minutes a day, set a short monthly check: compare the documents you issued with the money that reached your bank account, and make sure a receipt was issued for every payment, as the Income Tax bookkeeping rules require. That way a missing document turns up while the client still remembers the deal, not when the annual report is being prepared.
Example: Digital Invoices in a Small Online Shop
Dana Levi, 32, runs an online gift and lifestyle shop from her home in Rishon LeZion. She used to spend hours writing invoices by hand, mailing them, and tracking payments. Sometimes a document slipped through, and she only noticed at the end of the month, when she tried to match orders to payments.
Since she started using a digital system, she issues a document for every paid order and sends customers a payment link. She is on the recommended plan, so she also uploads her expenses as photos, and the VAT reports her business is required to file are included in it, so less work piles up at the end of the period.
She now spends the time she gains on photographing products and promoting her shop on social media. She also uses online card payments so customers can pay by credit card directly from the payment page.
An online shop can save another step if card processing on its website is connected to the document system, so that every paid order produces a document automatically. In Keep this works through an API for accepting card payments on your website or through a shop plugin, and the Wix and Shopify plugins are in the recommended plan. After connecting, and before you start selling through it, place a test order and check that the document type and amount are right.
Who Is This Solution For?
Digital invoices are suitable for a wide range of freelancers and small business owners. Graphic designers who issue invoices for projects can issue them from anywhere and send the client a payment link. E-commerce merchants can take card payments directly on their website.
Shop or clinic owners who need to track payments from multiple clients enjoy better organization and transparency. Even consultants or service providers who spend a lot of time in meetings can generate an invoice on the go through the app.
The system suits different kinds of small businesses, whether you sell physical products, services, or digital goods.
Your dealer status decides which documents you issue. An Osek Patur does not charge VAT and may not issue a tax invoice, so it gives clients receipts and, where needed, transaction invoices. An Osek Murshe issues a tax invoice for transactions subject to VAT and must issue one when the client asks. Check your status before you issue your first document.
Summary: Valuable Time Returns to Your Business
Digital invoices make business management efficient, organized, and less stressful. From issuing an invoice anywhere to tracking payment status, plus VAT reports in the recommended plan, the system saves time and lets you focus on what matters -- growing your business.
When you choose a digital invoicing system, check four things: that the software is registered with the Tax Authority, that documents come out as digitally signed PDFs, that you can send the client a payment link, and that you can see in one place who has paid and who still owes money. Also check what each plan includes, such as expense upload or VAT reports, before you sign up.
Whether you are a designer, merchant, or shop owner, this tool brings order and peace of mind. Start streamlining your business with Keep and feel the difference.
Frequently Asked Questions About Digital Invoices
Are digital invoices legal in Israel?
Yes, as long as each invoice meets the requirements. Among other things, it must carry all the details the Income Tax bookkeeping rules require and be issued by software as a computerised document with a secure or certified electronic signature. You send it to the client as a file, and the client does not need to print it. Computerised documents should go only to clients who agreed to receive them that way.
Can an Osek Patur issue digital invoices?
Yes, but not tax invoices. An Osek Patur issues receipts and, where needed, transaction invoices, and can issue them digitally like any other business. Only an Osek Murshe may issue a tax invoice, and anyone who issues one without being entitled to do so owes double the tax shown on it.
How long do you need to keep digital invoices?
The same as paper documents: 7 years from the end of the tax year, or 6 years from filing that year's annual report, whichever is later. The period runs separately for each tax year. An invoice you received as a signed digital file in the first place is kept as a file and does not need to be printed.
When does a tax invoice need an allocation number?
Since June 2026, a tax invoice to a business client for more than 5,000 shekels before VAT needs an allocation number from the Tax Authority, or the client cannot deduct its VAT (as of September 2026). The Osek Murshe issuing the invoice requests the number online when the client asks for it. An Osek Patur does not issue tax invoices, so the requirement does not apply to it.
How do you issue a digital invoice?
Choose invoicing software that is registered with the Tax Authority and fill in your business details. For each transaction, choose the document type, enter the client's details, a description and the amount, and issue a digitally signed PDF that you can send to the client. An Osek Patur issues a receipt for every payment, and a transaction invoice where needed; an Osek Murshe can also issue a tax invoice.
