The recently proposed tax receipt reform that is targeted at businesses has undergone another postponement. This reform mandates that all businesses must reserve a receipt number in advance for any transactions that are worth more than NIS 25,000. The implementation of this reform, which was originally set to take effect from April 1, has now been pushed back to May 5.
This is not the first time that the implementation of this reform has been postponed. Initially, this reform was supposed to be put into practice from January 1, 2024. However, due to unforeseen circumstances brought about by the war, the implementation had to be delayed.
This reform is a part of a larger set of measures that are aimed at combatting tax evasion and the illegal writing-off of VAT. Once this reform is put into effect, any receipts that have not been reserved in advance will not be accepted for VAT write-off and tax accounting purposes. This implies that businesses will have to be more thoughtful and plan their transactions in advance to ensure compliance with this new regulation.
It is important to note that this reform is primarily targeted at transactions that occur between businesses or organizations. It does not apply to transactions that involve an end consumer or transactions that occur between individual persons. At the initial stage, the reform will be applicable to transactions that are worth NIS 25,000 or more. However, as time goes by, this threshold is expected to gradually decrease, thereby bringing more transactions under the purview of this reform.
