- Israel has introduced a new invoicing model to combat fictitious VAT claims.
- Effective from 1 January 2024, tax invoices require allocation numbers for transactions above certain thresholds.
- Allocation numbers are issued online and are necessary for input VAT deductions.
- Thresholds for allocation numbers are NIS 25,000 in 2024, NIS 20,000 in 2025, NIS 10,000 from 1 January 2026, and NIS 5,000 from 1 June 2026.
- The allocation number is a 9-digit code that must be clearly labelled and displayed on the tax invoice.
- Customers can verify allocation numbers through a secure digital platform.
- The new model aims to improve transparency, streamline tax claims, and reduce fraud in the VAT system.
Source: fintua.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
