In an effort to combat VAT fraud, Israel is undergoing a tax reform. Currently under an EU-based post-audit approach, Israeli authorities have announced their ambition to move towards the more Latin American-style of continuous transaction controls (CTCs) where invoices are approved prior to their issuance. The details of the proposed system, as well as a timeline for roll-out, have yet to be published.
Israel is currently in the process of moving away from a post-audit approach to VAT. We expect to learn more about the details of the new CTC regime in the near future.
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