Updates in VAT registration threshold, deductions and penalties The Israeli Tax Authority updated VAT invoicing, reporting thresholds, and penalties from 1 January 2025. There was also an Israeli 1% VAT rise. In Israel, VAT registration is mandatory for businesses with annual turnover exceeding NIS 120,000
E-invoicing updates to technical specifications ahead of January 2025 full regime Since May 2024 there has been an ongoing phased requirement for Israeli taxpayers to pre-request a unique invoice Allocation Number from the Israeli Tax Authority (ITA). The ITA has now issued new technical speficifations (Agent
VAT-fraud measure proposal for B2B construction and personnel services Israel’s parliament, Knesset, is considering a proposal to impose mandatory domestic reverse charge on VAT for the provision of construction and staff services. The aim is to tackle VAT fraud were the tax element of such
2023/24 Budget drops proposals for VAT collections obligations for non-resident service providers from 2024 The Israeli government has reportedly abandoned 2023/24 budget plans to extend Israeli VAT collections obligations to foreign providers and digital platforms for digital or electronic services to consumers. Under the proposals, B2B
Ministry of Finance phases in 2024-28 pre-clearance B2B e-invoices to tackle fictitious invoice fraud The Israeli Ministry of Finance is progressing a Continuous Transaction Control (CTC) based electronic invoicing regime. The aim is to tackle the large ‘fictions invoice’ fraud problem, often used by criminal gags
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
The Israel tax authority extends returns and remittance deadlines Israeli VAT returns are filed bi-monthly if the annual turnover does not exceed NIS 1.51million (approx €400,000 or $470,00). Otherwise it is monthly filings. The bi-monthly March and April returns and remittances is now delayed until
The Israeli government has included proposals to levy VAT on non-resident providers of digital or electronic services to its consumers in its 2021/22 budget for 1 January 2022 at the earliest. The new ‘Arrangement Law’ would update the Israeli Income Tax Ordinance to reflect increased
2021/22 budget includes VAT on foreign digital services The Israeli Ministry of Finance has announced that it will revisit again taxing e-commerce goods and digital services being provided to its consumers by non-resident sellers or providers. Israel is on of the very few developed economies
The Israel tax authority has granted an extension of VAT filings in September. Postponed July and August reporting Israeli VAT returns are filed bi-monthly if the annual turnover does not exceed NIS 1.51million (approx €400,000 or $470,00). Otherwise it is monthly filings. The bi-monthly July
