Type: Legislation
The Israeli Ministry of Finance is developing an electronic invoicing system based on Continuous Transaction Control (CTC). The intention is to address the significant “fictions invoice” fraud issue, which is frequently exploited by criminals to launder money.
The Ministry is recommending, initially, that all invoices above NIS 25,000 (about €6,250 or USD 6,710) be sent in real-time to the Tax Authority for confirmation and assignment of a specific digital invoice number. Without this number, it will not be possible to deduct input VAT.
The threshold will gradually drop until it reaches NIS 5,000 (about €1,300 or USD 1,600) on January 1, 2028.
All B2B transactions that exceed the invoice threshold would be subject to this.
Effective date: 2024
