To combat fake invoice fraud, the Ministry of Finance of Israel introduces pre-clearance B2B e-invoices between 2024 and 2028.

May 31, 20230

Type: Legislation

The Israeli Ministry of Finance is developing an electronic invoicing system based on Continuous Transaction Control (CTC). The intention is to address the significant “fictions invoice” fraud issue, which is frequently exploited by criminals to launder money. 

The Ministry is recommending, initially, that all invoices above NIS 25,000 (about €6,250 or USD 6,710) be sent in real-time to the Tax Authority for confirmation and assignment of a specific digital invoice number. Without this number, it will not be possible to deduct input VAT. 

The threshold will gradually drop until it reaches NIS 5,000 (about €1,300 or USD 1,600) on January 1, 2028. 

All B2B transactions that exceed the invoice threshold would be subject to this. 

 

Effective date: 2024 

Source

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