Update: E-invoicing in Israel has been delayed by a month!

14-03-2024 | 2 | Business to Government compliance, Tax and Audit Readiness

The tax authority of Israel announced the granting of an additional extension to the operation of e-invoicing in Israel mandate. On 26th February 2024, the Israeli authorities granted the extension till 05th May 2024, wherein businesses receiving tax invoices in an amount exceeding NIS 25,000 can deduct the input tax only if there is an allocation number for the invoice. 

Interestingly, the government opted for this additional extension considering businesses that haven’t completed their technological preparations for compliance with the law. However, organisations that have completed their e-invoicing technological preparations have the freedom to issue their allocation numbers. 

Subsequently, keep in mind that, because of the ongoing conflict in the country, employing the e-invoicing model in Israel becomes important. This is because authorities have to deal with the possible occurrence of fictitious invoices, black capital, and damage of billions of shekels to the state assets. 

In the upcoming weeks, authorities will proactively contact businesses that issue invoicing over NIS 25,000 – to help them register in the system for implementing the e-invoicing in Israel mandate as per the law. 

As a matter of fact, the VAT law amendment regarding the tax invoice numbers allocation intends to combat the occurrence of fictitious invoices. Interestingly, as a part of the law, as of 1st January 2024, it was decided that tax authorities would issue allocation numbers through an online system for tax invoices. This allocation number is mandatory as a condition for the deduction of input tax in transactions above the upper limit set by the law. Additionally, this must be according to the outline prescribed by the law.

Although on 23rd October 2023, authorities granted the initial extension of e-invoicing in Israel to 1st April 2024, upon the requests received from several businesses, an additional extension of one month has been granted. 

With the ever-changing tax and regulatory landscape, updates, delays, and more for e-invoicing and e-reporting are bound to come. TJC Group stays on top of these updates and continues to publish important information about e-invoicing in Israel, Malaysia, France, and countries across the globe. Head on to our page for more!

For your e-invoicing and e-reporting requirements, you can contact us here!