The Knesset (Israeli Parliament) Finance Committee has approved a series of tax measures aimed at reducing black capital, as part of the Economic Efficiency Law linked to the state budget.
A key change is the proposal to lower the transaction threshold that triggers the CTC clearance obligation, which requires taxpayers to obtain an allocation number as a condition for VAT deduction. The new proposed thresholds are:
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10,000 NIS (approx. 2,600 EUR) excluding VAT, starting 1 January 2026
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5,000 NIS (approx. 1,300 EUR) excluding VAT, starting 1 June 2026
The current calendar for the Israeli CTC obligation sets the transaction thresholds at:
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20,000 NIS (approx. 5,200 EUR) excluding VAT since 1 January 2025
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15,000 NIS (approx. 3,900 EUR) excluding VAT starting 1 January 2026
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10,000 NIS (approx. 2,600 EUR) excluding VAT starting 1 January 2027
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5,000 NIS (approx.1,300 EUR) excluding VAT starting 1 January 2028
Therefore, if approved, the new proposal will accelerate the CTC expansion timeline, meaning more transactions will fall under the clearance requirement earlier than originally planned.
This measure still requires final approval by the full Israeli Parliament before it takes effect.
To learn more about the Israeli CTC obligation and e-invoicing requirements, access our Sovos dedicated webpage.
