Chamber of Auditors Calls for Postponement of Pre-Reservation Mechanism for Tax Receipts due to Ongoing War

Auditors in Israel threaten to take drastic action

The Tax Administration has been instructed by the Chamber of Auditors to delay the implementation of a pre-reservation mechanism for tax receipts worth more than NIS 25,000 until 2025. This system is intended to combat fictitious receipts and tax evasion. Without a pre-reserved number, receipts will not be taken into consideration when writing off VAT. The mechanism was originally set to take effect on April 1, 2024.

The Chamber of Auditors believes that the postponement of the mechanism’s launch is necessary due to the ongoing war. Reservists and evacuees who have already experienced significant losses in their businesses over the past four months are now unable to handle any additional bureaucratic requirements. If the decision to postpone is not made, the chamber warned that it would take “unprecedented measures.”

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