- Reduction of VAT Deduction Thresholds: Beginning January 1, 2026, businesses will be required to obtain a tax allocation number for VAT deductions on transactions exceeding 10,000 NIS. This threshold will be further reduced to 5,000 NIS starting June 1, 2026, as part of measures to combat the informal economy.
- Transition to Electronic Invoicing: Israel is implementing a digital transformation in tax administration through a phased electronic invoicing system, which commenced in 2024. This system will require real-time communication with the Israeli Tax Agency for invoice validation and aims to enhance tax control and reduce tax evasion.
- Preparation for Compliance: Companies operating in Israel should prepare for these changes by reviewing their invoicing processes, ensuring compliance with the new thresholds, and implementing electronic invoicing solutions to facilitate integration with the tax system, thereby ensuring a smooth transition by the set deadlines.
Source Edicom
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
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