- Israel has introduced changes to its CTC system, speeding up the timeline for invoice allocation number requests.
- Taxpayers must obtain a unique allocation number for invoices above certain thresholds for real-time transaction verification.
- Changes were enacted through the Law for Achieving Budgetary Goals and Implementing Economic Policy for 2025.
- The original schedule had a gradually decreasing threshold reaching NIS 5,000 by 2028.
- The new timeline skips the NIS 15,000 threshold.
- From 1 January 2026, allocation numbers are needed for invoices of NIS 10,000 or more.
- From 1 June 2026, allocation numbers are needed for invoices of NIS 5,000 or more.
- Amendments link VAT compliance with income tax deductibility.
- Effective 1 August 2025, expenses without a required allocation number are not deductible for income tax.
Source: sovos.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.
