3572436 - E-invoicing 2025 changes in Israel - Localization

The Tax Authority announced changes to the Israel E-invoice effective 2025. Here are the details:

The Tax Authority refers to the option to withhold an invoice and then report to the Tax Authority in one of 4 options:

Option 1: Canceling the invoice before it was released and not sending the original invoice and the cancellation invoice as part of the VAT file.
Option 2: Releasing the invoice without an allocation number and adding an allocation number retrospectively.
Option 3: "reversing the charge"-a type of self-invoicing-will the option be supported? 
Option 4: "Request for a hearing" - the invoice remains unreleased and waits for a decision to cancel or release while adding a manual allocation number.

The legal requirement could be found online via link: https://www.gov.il/BlobFolder/generalpage/hor-software-other/he/vat_software-houses-180724.pdf

The changes are documented in chapter 1.4  and 2.2.2.

SAP Business ByDesign

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It is confirmed with development team that this process of delayed invoiced will be supported by options 1 and 4.

As it is not mandatory to support all options the other options are not supported and will not be included in the further development plan.

e-invoice; Israel ; 2025; Tax Authority; Invoicing; EInvoice; Legal requirement;  , KBA , AP-CI-CI-GLO , Cross-Country Extensions , Problem