In accordance with the 2023/2024 state budget plan, Israeli authorities are transitioning to a Continuous Transaction Controls (CTC) system, which requires invoices to be submitted to the tax authority in real time to receive approval.
As per the latest Israel Tax Authority (ITA) specifications, the CTC mandate will be rolled out in phases depending on the net value of issued invoices, as outlined below:
- From April 2024, the mandate will apply to invoices that exceed NIS 25,000 (approximately EUR 6,100) before VAT during the pilot phase.
- From January 2025, this will be extended to invoices exceeding NIS 20,000 (about EUR 4,900) before VAT.
- From January 2026, the mandate will extend to invoices surpassing NIS 15,000 (around EUR 3,700) before VAT.
- From January 2027, it will include invoices that exceed NIS 10,000 (approximately EUR 2,450) before VAT.
- From January 2028, the mandate will cover invoices exceeding NIS 5,000 (about EUR 1,220) before VAT.
After all conditions are met, the tax authority assigns an allocation number to each valid invoice as an indication of approval. To receive this number, invoices must contain all the necessary information, including:
- Invoice ID
- Invoice type
- Accounting software number
- Issuer VAT Identification Number
- Invoice date
- Payment amount
- VAT amount
- Payment details
After acquiring and adding the allocation number to the e-Invoice, it is the supplier’s responsibility to send it to the recipient. The recipient can verify the invoice on the government platform.
The e-Invoice can be submitted in two ways:
The first is via APIs now both test and production environments have their own communication IDs. Beside allocation number can be get automatically by the supplier through related APIs. The second method is to do it manually, which is suitable for small or micro-sized companies who don’t have their own ERP system or a low volume of invoices.
To enter Israel’s invoice applications, taxpayers must acquire a new identification or through a comsign card. Old VAT identifications are not valid.
How can SNI help you?
SNI’s add-on solution is end-to-end, meaning that data is retrieved from your SAP system, the data is mapped, processed, and sent to the tax authorities through a single solution.