Type: Legislation
Israel is gearing up to enforce B2B e-invoicing regulations, accompanied by FAQs from the Tax Authority ahead of the 5th May 2024 deadline. Purchase invoices over NIS 25,000 will require a pre-issued unique Allocation Number for VAT deductions, with plans to lower this threshold starting January 2025. The FAQs cover topics like Allocation Number understanding, verification, acquisition, IRS registration, and resolution steps for missing numbers.
In response to concerns about fraudulent practices, the IRS postponed the phased launch of B2B e-invoicing from April to 5th May 2024. This extension aims to assist businesses still preparing technologically amidst ongoing conflicts. A one-year pilot project will introduce a mandatory unique digital sales invoice number, starting in 2025, to combat fraud.
The Ministry also proposes a phased approach to threshold reduction for eligible invoices, crucial for VAT deduction eligibility. The revised timetable outlines gradual reductions in the invoice value threshold from May 2024 onwards, until January 2028.
Effective date: May 5th 2024
