Last week we held a webinar on how to submit and calculate the government grants.
For the benefit of all those who could not attend, we have uploaded the webinar to our website.
You are invited to view the presentation and hear our experts explain the topic. Please note that the webinar is in Hebrew.

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Update - The system for submitting requests for compensation has been activated.

“Cheshbonit Yisrael” (Israel Invoice)
As of January 1, 2024, the new provision of the law regarding the issuance of invoices will go into effect. The new model is called Israel Invoice and its purpose is to optimize the collection/offsetting of VAT payments for the tax authorities. It is also designed to reduce the phenomenon of issuing fictitious invoices and crediting for illegal VAT amounts.

How will it work?

The Tax Authority will issue assigned numbers to businesses for any new tax invoices they issue. Any invoice that does not contain an assigned number will not be eligible for VAT refunds. As of 2024, the minimum invoice amount that requires an assigned number will be NIS 25,000 (before VAT) and will subsequently drop to NIS 5,000 (before VAT) by 2028. It should be noted that the assigned numbers are only required for invoices with full (currently 17%) VAT – invoices with 0% VAT do not require an assigned number (as the customer cannot claim any VAT paid in such a case).

An assigned number can be issued in one of the following ways:
1. Issuance through the computerized accounting software that the business works with on an ongoing basis, such as a greeninvoice, etc.
 
2. If you issue manual invoices, you can submit an independent request through an interface that the tax authority will open for each individual invoice that the business produces. (During the year 2024, the tax authorities have pledged to authorize any request that is submitted, in order to assist the business owners in the new process. Later they will establish criteria to ensure that this is a genuine transaction)
 

What’s next?

Since the change the tax authority’s policy is going to accompany the business world
in the coming years, we recommend that all of our clients use an online invoice system, and to completely stop issuing manual invoices and receipts. Working with software will help you get the assigned number in a simple
and user-friendly procedure. The number will be incorporated into the invoicing
system in your business, and will save you unnecessary bureaucratic hassle. In
addition, the cost of using the digital invoices is generally low - only a few dozen shekels per month. There are many online invoice programs on the market, such as Greeninvoice, Payplus, invoice4u, etc. - all of them are easy to use, and well recommended.
 
Non-profits and businesses that are exempt from VAT (osek patur): We recommend that you issue computerized receipts. There are many interfaces on the market that produce the desired results.

Please take note: After taking into consideration the "Iron Swords" war, the Tax
Authority has decided to permit the claiming of input tax using a tax invoices without
assigned numbers, through March 31, 2024. However, businesses that have completed implementing the technological development, and requested assigned numbers by January 1, 2024, will each receive an assigned number and will consequently benefit from an accelerated VAT refund process.