The Israel Tax Authority has released a set of guidelines encompassing technical details and other relevant information regarding the implementation of the Israeli Invoice model.
The guidelines state the new model will be a phased implementation that begins with a pilot program in 2024. A key objective of this new model is to address and mitigate the long-standing issue of fictitious invoices in Israel.
The Israeli Invoice model will be a phased implementation, beginning with a pilot program in January 2024 for invoices exceeding 25,000 NIS (approximately 6,500 euros). During this phase, the tax authority can only reject the request for invoice numbers in cases of technical errors.
As implementation progresses, the threshold will be gradually reduced as follows:
- 2025: The threshold will be reduced to 20,000 NIS (appx. 5200 euros) pre-VAT. Note that the Finance Committee may extend the pilot program through 2025.
- 2026: The threshold will further decrease to 15,000 NIS (appx. 3900 euros) pre-VAT.
- 2027: The threshold will be 10,000 NIS (appx. 2600 euros) pre-VAT.
- 2028: The threshold will be set at 5,000 NIS (appx. 1300 euros) pre-VAT.
Source Sovos
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