Auditors Chamber of Israel warns of ‘unprecedented actions’

The Chamber of Auditors has issued a statement to the Tax Administration, requesting that the pre-reservation of tax receipts for transactions over NIS 25,000 be delayed until January 1, 2025. The mechanism was initially introduced to combat tax evasion and fraudulent receipts, but it will not consider receipts without a pre-reserved number when writing off VAT. This was set to take effect on April 1, 2024.

The Chamber of Auditors believes that the delay is necessary due to ongoing war conditions affecting reservists and evacuees. Their businesses have already been severely impacted by the conflict, and they cannot afford any additional bureaucracy. In fact, the statement warns of taking unprecedented measures should the decision not be made promptly.

The mechanism aimed to reduce instances of tax evasion by requiring businesses to pre-reserve a unique number for each transaction over NIS 25,000 before submitting their VAT returns. This would ensure that all receipts were accounted for and reduce the opportunity for fraudulent activity. However, with many businesses already struggling under the weight of war conditions, this additional burden could prove too much for some to bear.

By Editor

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