In Israel there is a widespread phenomenon of the usage of fictitious invoices. Issuing invoices in this illegal manner is used to evade payment of tax which is legally due and often to launder the economic activities of criminal organizations. In order to fight crime and allow fair competition between businesses that pay legally due taxes, it is proposed that invoices over NIS 5,000 issued between dealers will require the approval of the Tax Authority in real time through a system before the invoice is issued. The measure will help the enforcement agencies to focus the enforcement on the suspicious companies, and even shorten bureaucratic processes to normative businesses through the establishment of a platform for direct communication with the Tax Authority.
Source gov.il
Latest Posts in "Israel"
- Court Rules Bank-Owned Insurance Agency Must Be Classified as Financial Institution for VAT Purposes
- Israel Raises VAT Exemption on Personal Imports to $130, Effective Midnight
- Smotrich Vows Not to Surrender to Left After Coalition Blocks VAT Exemption Order
- Knesset Rejects Plan to Expand VAT Exemption on Imported Goods
- Cabinet Backs Smotrich’s $150 VAT Exemption Before Knesset Vote to Overturn Policy
