Israel E-Invoicing
Plans for a continuous transaction controls system
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.
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Israel's CTC Reforms
Israel is currently in the process of moving away from a post-audit approach to VAT. In its 2023-2024 budget, the government confirmed that it was working towards implementing real-time approval of invoices.
Quick Facts
- E-invoicing is currently permitted in Israel provided it’s prominently stated on the invoice that it is a ‘computerized document’
- A digital signature is required to ensure the integrity and authenticity of the invoice
- Storage of e-invoices must be within Israel unless derogation has been granted. This rule also applies to the mandatory backups
- Outsourcing of archiving also requires derogation
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