Israel Updates Invoicing Services and CTC Documentation

The Israeli Tax Authority (ITA) has published a new version of its invoicing services documentation. This updated document introduces enhanced services and outlines alternative methods to follow in case of delays after submitting invoice data.

In May 2024, Israel implemented its Continuous Transaction Control (CTC) clearance mandate. Under this system, the ITA assigns an “allocation number” to invoices. Buyers cannot use invoices received from suppliers for tax deduction purposes without these allocation numbers. During the initial pilot phase, the ITA can only reject submissions due to technical errors. However, once the pilot phase ends at the end of 2024, the ITA will also be able to reject allocation number requests if there is reasonable doubt that the transaction is fictitious.

To align with these legislative changes and improve user experience, the ITA is updating its invoicing services and has released revised documentation.