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 shekels.
There is also a threshold on non-VAT registered businesses of 15,000 shekles for cash payments. There is no thresholds on family transfers.
The tax offices believes the law will compel people to pay with digital methods rather than cash so that transactions can be easily tracked. Cash payment limitations are intended to rein in tax evasion, black market activity, and even terrorist operations.
Fines will be from 15% of the amount paid.
At the same time, the tax authority has introduced a threshold of 321 shekels for B2B customers to require VAT invoice
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