The Israeli Tax Authority has announced a further delay in the enforcement of the allocation number requirements for invoicing, moving the start date from April 2024 to May 5, 2024.

Impact

Taxpayers were required to secure an allocation number from the tax authority for invoices exceeding NIS 25,000 (about 6,000 EUR). With this postponement, businesses will continue to have the flexibility to issue invoices and claim input VAT deductions without needing to include allocation numbers on their invoices until the May 5, 2024. It's crucial for taxpayers to prepare for these changes ahead of time because failure to comply with the new deadline will result in the inability to deduct input VAT on these invoices.