Regulatory updates - Israel

Get the latest news and updates on e-invoicing, e-ordering, e-archiving and indirect tax regulatory requirements.

Get the latest news and updates on e-invoicing, e-ordering, e-archiving and indirect tax regulatory requirements for Israel.
October 23 2023

Israel delays introduction of clearance CTC e-invoicing until 1 April 2024

In the light of state of war in Israel, the Israeli Tax Authority (ITA) has decided to postpone the mandatory use of clearance e-invoicing approach for 3 months, initially scheduled for 1 January 2024.

July 12 2023

Israel has finally released technical specifications for their upcoming e-invoicing and CTC mandate

The Israel Tax Authority (ITA) has published the technical specifications that will be required to be used for the upcoming CTC implementation which is supposed to start from 2024.

 

June 9 2023

Israel announces its intention to adopt CTC as part of an economic plan

With an emphasis on combating the use of fraudulent and fictitious invoices, the Israeli Ministry of Finance and Tax Authority are promoting the implementation of CTC in the jurisdiction.

 

April 5 2023

Israel to introduce CTC model

In the interest of cracking down on the usage of illegal invoices and increasing efficiency for tax enforcement agencies, Israel proceeds with a long-expected introduction of a continuous transaction control (CTC) model.

September 22 2020

Israel Finance Ministry opposes proposed VAT reduction

Israel’s proposal to reduce the value-added tax rate (VAT) from 17% to 12% has been rejected by the Israel Finance Ministry.

March 27 2020

Authorities plan introduction of mandatory e-invoicing in Israel

The authorities plan to adopt the Chilean model for the e-invoicing mandate, which is a clearance model that requires documents be approved by tax authorities before a buyer and seller complete a transaction. According to the latest updates, Israeli businesses will be required to transmit all invoices with a value exceeding NIS 5 000 to authorities.

Country Specifications

E-Invoicing/CTC Model:

- Currently: Post Audit

- April 2024: Pre-Clearance Model

Mandatory Infrastructure:

N/A

Mandatory Format:

N/A

Mandatory for Issuing:

- Currently: No explicit requirements
- April 2024- Invoice amount higher than NIS 25.000 (ca. EUR 6.100) before VAT (pilot phase)
- January 2025 - Invoice amount higher than NIS 20.000 (ca. EUR 4.900) before VAT
- January 2026 - Invoice amount higher than NIS 15.000 (ca. EUR 3.700) before VAT
- January 2027 - Invoice amount higher than NIS 10.000 (ca. EUR 2.450) before VAT

Mandatory for Receiving:

- Currently: No explicit requirements
- April 2024: Optional to validate

eSignature:

Mandatory

Archiving Period:

7 years

Archiving Abroad:

Allowed under conditions

Regulatory overview

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