Regulatory updates - Israel

On March 17, 2025, The Knesset announced the new timelines associated with allocation numbers and the requirements for taxpayers to retrieve them. The previous timeline expanded into 2028, but the new timelines, which have been shortened, and invoice amounts are as follows: 

• January 2026 - Invoice amount higher than 10,000 NIS (ca. 2,450 EUR) before VAT; 

• June 2026 - Invoice amount higher than 5,000 NIS (ca. 1,220 EUR) before VAT. 

The announcement further details the Finance Committee’s decisions to reduce the threshold for submitting detailed VAT reports to 500,000 NIS by October 2025.  

These measures will take effect only after the approval of the Knesset Plenum. 

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.