Parliament votes for complete e-invoicing launch early by June 2026 The Israeli Finance Committee of the Knesset wants to bring forward from January 2028 to June 2026 to six-phased launch of its centralised Continuous Transaction Control (CTC) based electronic invoicing regime. The first phase started in
Updates in VAT registration threshold, deductions and penalties The Israeli Tax Authority updated VAT invoicing, reporting thresholds, and penalties from 1 January 2025. There was also an Israeli 1% VAT rise. In Israel, VAT registration is mandatory for businesses with annual turnover exceeding NIS 120,000
1st January 2025 1% VAT rise comes into effect Israel’s 2025 Budget Law included a 1% Vat rise from 17% to 18% from 1 January 2025. The VAT exemption for tourists was also withdrawn. The government’s indirect tax hike is to raise extra funding for
VAT-fraud measure proposal for B2B construction and personnel services Israel’s parliament, Knesset, is considering a proposal to impose mandatory domestic reverse charge on VAT for the provision of construction and staff services. The aim is to tackle VAT fraud were the tax element of such
2023/24 Budget drops proposals for VAT collections obligations for non-resident service providers from 2024 The Israeli government has reportedly abandoned 2023/24 budget plans to extend Israeli VAT collections obligations to foreign providers and digital platforms for digital or electronic services to consumers. Under the proposals, B2B
Ministry of Finance phases in 2024-28 pre-clearance B2B e-invoices to tackle fictitious invoice fraud The Israeli Ministry of Finance is progressing a Continuous Transaction Control (CTC) based electronic invoicing regime. The aim is to tackle the large ‘fictions invoice’ fraud problem, often used by criminal gags
Reduction in limit on cash settlements to fight fraud Israel has reduced the permitted threshold for cash payments on B2B VAT invoices. From 1 August 2022, the maximum that may be settled in cash will be 6,000 shekles (approx. $1,795). It had previously been 11,000
The Israel tax authority extends returns and remittance deadlines Israeli VAT returns are filed bi-monthly if the annual turnover does not exceed NIS 1.51million (approx €400,000 or $470,00). Otherwise it is monthly filings. The bi-monthly March and April returns and remittances is now delayed until
Withdrawal of Value Added Tax exemption on imports below $75 Israel is set to follow many countries be implementing VAT on low-value goods consignments sold to its consumers from 1 January 2022 at the earliest per the much-delayed 2021/22 budget from the Finance Ministry. Any
The Israeli government has included proposals to levy VAT on non-resident providers of digital or electronic services to its consumers in its 2021/22 budget for 1 January 2022 at the earliest. The new ‘Arrangement Law’ would update the Israeli Income Tax Ordinance to reflect increased
