Regulatory updates - Israel

As stipulated by the technical specifications’ version 2.0, taxpayers must implement the updated requirements by 1 January 2025.

Key updates include:

• New JSON File Lines: Additional lines have been added to the JSON file required for clearing tax invoices, along with changes in validations for some lines.
• Updated and New Web Services: New web services have been introduced for cases where the ITA does not return an Allocation Number during the clearance process. ITA will offer four different methods to address this situation.
• New Document Types: Two new document types now require an Allocation Number:
  • • Agent Tax Invoice (חשבונית מס סוכן)
    • Journal Command (פקודת יומן)

1 January 2025 also marks the end of the pilot period, after which the ITA will begin applying technical validations to each received JSON file.

ITA has decided to grant an additional extension to taxpayers in the jurisdiction resulting from ongoing concerns stemming from the impact on the Israeli economy.

The mandate is now set to commence on 5 May 2024, giving taxpayers an additional month to adhere to the CTC requirements and obligations.

Initially, all Authorized Dealers registered in Israel were supposed to start clearing their Tax Invoices above NIS 25.000 (ca. EUR 5.800) [before VAT] from 1 January 2024. Due to current state of war in Israel, the obligation is now postponed to 1 April 2024.

As the obligation for the suppliers to obtain the Allocation Number is now delayed to 1 April 2024, the buyers will be able to deduct VAT even for invoices without such Allocation number issued during the period 1 January to 1 April 2024. Starting from 1 April 2024, all invoices in the scope must, however, include the Allocation number assigned by SHAAM.

Important to note, as ITA is on track with SHAAM development, the suppliers will be able to obtain the Allocation Number already starting from 1 January 2024 on voluntary basis. 

The official ITA statement is available here.