07.03.23

Announcing new time plan for the B2B e-invoicing mandate

In the 2023/24 Budget, Israel confirmed the implementation of an e-invoicing mandate. The mandate will follow a phased approach starting in 2024 according to invoice value. The Ministry of Finance has announced the following schedule: 

• 2024 – mandatory for invoices with value above NIS 25,000 (~USD 6,896) 
• 2025 – mandatory for invoices with value above NIS 20,000 (~USD 5,517) 
• 2026 – mandatory for invoices with value above NIS 15,000 (~USD 4,137) 
• 2027 – mandatory for invoices with value above NIS 10,000 (~USD 2,758)  
• 2028 – mandatory for invoices with value above NIS 5,000 (~USD 1,379) 

The e-invoicing mandate is based on a Clearance Model. Under this model, invoices must be sent to and approved by the Tax Authority in real time. A unique identifier will be assigned by the Authority upon approval. Taxpayers cannot deduct input taxes from invoices without this procedure.