Regulatory updates - Israel
Israel advances timeline for allocation number requirements
The Knesset Financial Committee recently announced, in a series of readings regarding taxation measures, accelerated timelines for the requirement for Israeli taxpayers to request allocation numbers.
Israel advances timeline for allocation number requirements
The Knesset Financial Committee recently announced, in a series of readings regarding taxation measures, accelerated timelines for the requirement for Israeli taxpayers to request allocation numbers.
Compliance Alert – Standard VAT-rate increase to 18%
On 1 November 2024, the Israeli parliament approved the 2025 state budget. The budget entails an increase of the standard VAT-rate from 17% to 18%. This change will become effective as of 1 January 2025.
Country specifications
E-Invoicing/CTC Model:
Pre-clearance model (Allocation Number on invoice so buyer can deduct VAT for purchase)
Mandatory Infrastructure:
SHAAM
Mandatory Format:
Paper is predominant. Computerized documents (PDF) requires buyer's consent
Mandatory for Issuing:
Currently : No explicit requirements 5 May 2024- Invoice amount higher than NIS 25.000 (ca. EUR 6.100) before VAT (pilot phase) January 2025 - Invoice amount higher than NIS 20.000 (ca. EUR 4.900) before VAT January 2026 - Invoice amount higher than NIS 10.000 (ca. EUR 2.450) before VAT June 2026 - Invoice amount higher than NIS 5.000 (ca. EUR 1.220) before VAT
Mandatory for Receiving:
Currently: Buyer's written consent required to receive PDF or e-invoices
eSignature:
Mandatory only for PDF or XML with PDF attached (computerized documents require e-signature)
Archiving Period:
7 years
Archiving Abroad:
Allowed under conditions
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