According to the 2023/2024 State budget plan, for preventing VAT frauds and allowing fair competition between businesses, Israeli authorities are moving towards Continuous Transaction Controls (CTC). The ministry of finance is taking pre-clearance model into consideration similar to Chile or Italy. Also the ministry is proposing the invoices above NIS 5,000 (around Euro 1300) will need the approval of the Tax Authority in real time through a system. Which means that B2B transactions that are above this threshold will need to apply CTC and pre-clearance model. Besides focusing the enforcement on the suspicious companies will be more effective and easier.
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