Best place is on a flag staff, in the open air. IDF used painted color codes such as a white stripe along the length of the tank or a blue X on the deck (7th Bde, 82nd Bn, Sinai 1956). ..not laying the flag on the tank. That's the reason IDF tanks have such extra large white Hebrew markings on the side. The M-1 Super Sherman represents 7th Bde 1961. A flag would be used for special ceremonial functions or parades, or static locations, not generally for combat ID. Here's a typical marking and a good way to display the flag. German air recognition flags were specifically made for that purpose. Israel has too much respect for the flag to just drape it over a tank.