The amendment regarding the allocation number of tax invoices in the VAT Law aims to combat the phenomenon of fake invoices. Within the scope of the law, it has been determined that the related tax authority will issue allocation numbers for tax invoices required as a condition of input tax deduction for transactions over NIS 25,000 through the online system as of January 1, 2024. In October 2023, the Authority announced that the implementation of the VAT invoice to obtain an allocation number was extended until April 2024, and it was decided to extend it further in response with requests and feedback.
This new implementation deadline was updated by the tax authority to May 5, 2024. This extension provides taxpayers with more time to prepare their systems; authorized dealers who already have the technical infrastructure can voluntarily obtain allocation numbers. Under the Israeli VAT invoice model, authorized dealers receiving allocation numbers to their tax invoices that exceed NIS 25,000 as of this date will be able to deduct input tax only if an allocation number is present on the invoice. The government aims to prevent fictitious invoices and black capital with the e-invoice application.In the coming days, the authority plans to contact authorized dealers providing goods and services in Safar settlements in the north and south, who issue invoices exceeding NIS 25,000. They will assist them in registering in the system and facilitate the implementation of the VAT invoice law. You can find the official announcement here.
