Israel is steadfast in its mission to introduce an e-invoicing and reporting mandate in 2024. The nation’s clear strategy for implementing this system places it among the rapidly growing group of countries modernizing their tax compliance through innovative solutions. Delve deeper to understand the extensive scope of the forthcoming changes.
Recent communications from the Israeli Tax Authority (ITA) have unveiled a comprehensive system, incorporating both a B2B e-invoicing solution and a real-time CTC reporting model.
The e-invoicing mandate is set to be introduced in multiple stages, commencing in January 2024 for invoices valued over 25,000 NIS. The subsequent stages of implementation are planned as follows:
• 1 January 2024: Invoices over 25,000 NIS (~ 6,200 EUR)
• 1 January 2025: Invoices over 20,000 NIS (~ 4,900 EUR)
• 1 January 2026: Invoices over 15,000 NIS (~ 3,700 EUR)
• 1 January 2027: Invoices over 10,000 NIS (~ 2,450 EUR)
• 1 January 2028: Invoices over 5,000 NIS (~ 1,250 EUR)
The first year of the mandate is marked as a “pilot” year, allowing both participants and authorities to refine their systems and address any potential issues. However, ITA emphasizes that in 2024, the system will be fully operational for its participants, with the sole distinction being that all allocation number requests shall receive automatic approval.
Every invoice falling under the mandate will need to be assigned an “allocation number” (מספר הקצאה) before issuance to a buyer. This can be accomplished either by uploading it to a public web portal or transferring it to the ITA via a dedicated API. Once validated by the Authority, the numbered invoice will be returned to the issuer, who remains responsible for forwarding it to the buyer.
In the event of a failure to assign an allocation number through regular means, the most recent documentation outlines an emergency invoice validation feature to be implemented. This solution involves issuing pools of “emergency allocation numbers” for interested taxpayers to use during such emergencies. Any use of such a number shall be reported to the Authority after the emergency subsides.
How Can Comarch help?
Comarch offers seamless processing of relevant invoices through the adoption of an API, significantly reducing paperwork and associated errors. Furthermore, this creates opportunities to integrate the e-invoicing process with your current ERP, CRM, or broader EDI systems, providing a comprehensive document processing solution for your business.
Comarch has consistently demonstrated expertise in managing e-invoices and other dematerialized documents. Our company aligns with diverse e-invoicing requirements across Asia, the Americas, and Europe, boasting a proven track record of delivering a wide range of e-invoicing solutions across the board.