The Israel Tax Authority (ITA) has released version 2.0 of its e-Invoicing technical specifications, bringing essential updates that taxpayers need to implement. These changes emphasize the Continuous Transaction Control (CTC) model, which is vital for enabling buyers to deduct VAT from cleared invoices.
To comply with these new standards, businesses must update their systems by January 1, 2025. The updated version introduces several key modifications, including new lines in the JSON file format for tax invoices and revised validation rules to improve data accuracy. Additionally, new web services have been introduced to address scenarios where Allocation Numbers are not returned, offering businesses various methods to manage these situations.
Furthermore, two new document types now require Allocation Numbers: the Agent Tax Invoice and Journal Command. Businesses must adapt their processes to handle these documents according to the updated specifications. The pilot phase will end on January 1, 2025, after which the ITA will enforce stricter compliance checks on received JSON files. To prepare, businesses should update their invoicing systems, integrate the new web services, and adjust their document management practices to meet the new requirements.
