Israel Introduces E-invoicing Clearance Model
![Israel Introduces E-invoicing Clearance Model](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fn8j7z2cp%2Fproduction%2F28f657a1b5e425c999c9eec27e084a776642ec21-1392x772.jpg%3Fw%3D1392%26h%3D772%26fit%3Dcrop%26auto%3Dformat&w=3840&q=75)
The government of Israel plans to implement a phased Continuous Transaction Control (CTC) model for B2B e-invoicing as part of its economic plan for 2023-2024.
Timeline
From January 1, 2024, the Israeli Tax Authority will assign invoice confirmation numbers. This confirmation number will be required for purchasers to deduct the VAT charged. There will be a phased approach using the following timeline and thresholds:
- 2024 – invoices above NIS 25,000 (≈7000 USD)
- 2025 – invoices above NIS 20,000 (≈ 6153 USD)
- 2026 – invoices above NIS 15,000 (≈ 4615 USD)
- 2027 – invoices above NIS 10,000 (≈ 3077 USD)
- 2028 – invoices above NIS 5,000 (≈1400 USD)
Impact
The implementation of e-invoicing aims to prevent the use of fake invoices, thereby combating tax fraud and evasion.
Businesses operating in Israel should start getting ready for the forthcoming mandatory e-invoicing regulation. Business should assess their current IT systems, ERP (Enterprise Resource Planning) systems, and tax compliance processes to ensure they are aligned with the new requirements for e-invoicing in Israel.