LawTax Law
Value Added Tax Law, 5736-1975
חוק מס ערך מוסף, תשל"ו-1975
Published: 1976-01-06Consolidated Hebrew text as of 2026-07-13 · Last amended 2026-03-31✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More
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Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.
The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.
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Chapter X: Registration
Obligation of registration§
52.
(a)A dealer, a non-profit and a financial institution are required to register, at the time and in the manner prescribed.
(b)A person who has proved, to the satisfaction of the Director, that the person is establishing a business, may register as a dealer, and upon registration the person's status in all respects shall be that of a dealer.
(c)The Director may decline to register a dealer, a non-profit or a financial institution, if the Director has reasonable grounds to suspect that the person will engage in unlawful activities.
(d)The Director may demand security to the Director's satisfaction from a person applying to register as a dealer, as a non-profit or as a financial institution, as the case may be, as a condition of registration as aforesaid, if that person was convicted, within the five years preceding the date on which the application for registration under this section was submitted, by a final judgment of an offence under section 117(a)(3), (5) or (6), and has not paid the tax debt that is the subject of the indictment, or was convicted by a final judgment of an offence under section 117(b); for the purposes of this subsection –
"person" – including a body of persons in which an active manager, a substantial shareholder or a partner therein was convicted of an offence as aforesaid;
"substantial shareholder" – as defined in the Companies Law, 5759-1999.
Authorised dealer certificate and registration confirmation§
53.
(a)A dealer who is not an exempt dealer shall receive, upon registration under section 52, an authorised dealer certificate.
(b)A person who is not an authorised dealer shall receive, upon registration, confirmation of registration and of classification.
Registration by the Director§
54.
Where a person is required to register and has not registered, the Director may register that person as a provisional registration; such registration shall not exempt the person from the obligation to register under section 52.
Registration of several businesses of a dealer§
55.
A person who has several businesses or whose business comprises several business units shall register as a single dealer in respect of all of them; however, the person may register separately in respect of each business or unit within the business; the Minister of Finance may prescribe conditions for registration as aforesaid.
Registration of several dealers as one§
56.
Dealers who are Israeli citizens as defined in section 1a(b), whose fixed and continuous place of business is in Israel, and who have applied to register as one, may be registered as such by the Director, and upon registration they shall be deemed for the purposes of this Law to be partners; the Minister of Finance may prescribe conditions for the registration of dealers as one.
57.§
(Repealed — תשס״ב־3)
Registration under a different class§
58.
The Director may, upon the application of a person belonging to a particular class of taxable persons or on the Director's own initiative, register that person as belonging to a different class, either in respect of all of the person's activities or in respect of part thereof, if the Director has found that the nature of those activities is closer to the other class.
Registration of an authorised dealer as an exempt dealer§
59.
(a)An authorised dealer whose transaction turnover has declined and has stood for two consecutive years below the amount requiring registration as an authorised dealer, shall be registered by the Director, on the Director's own initiative or upon the application of the dealer, as an exempt dealer; this provision shall not apply to a person who has been determined to be an authorised dealer even if the person's transaction turnover is below the said amount.
(b)An authorised dealer whose transaction turnover in the first year of activity is below the amount requiring registration as an authorised dealer, the Director may, on the Director's own initiative, register the dealer as an exempt dealer.
Foreign resident with businesses or activity in Israel§
60.
(a)A taxable person who is a foreign resident and who has businesses or activity in Israel shall, within thirty days after commencing business or activity in the country, appoint a representative whose fixed place of residence is in Israel, notify the Director thereof, and attach the written consent of the representative.
(b)A representative appointed under this section shall have, for the purposes of this Law, the same status as the taxable person.
(c)Where a representative ceases to represent the taxable person, the taxable person or the representative shall give the Director written notice thereof not later than fourteen days after the cessation of the representation; the taxable person shall, within the same period, appoint a new representative in the manner referred to in subsection (a) and shall attach to the notice the name of the new representative and the representative's written consent.
(d)So long as the representative has not notified the Director that the representative has ceased to represent the taxable person, the obligations under subsection (b) shall continue to apply to the representative, and if the representative gave advance notice of the cessation of the representation, the said obligations shall apply until the date of cessation of the representation.
(e)In this section, "foreign resident" – as defined in section 1, including –
(1)in respect of an individual – an individual staying in Israel under a visa or a licence for non-permanent residence, as the Director shall direct;
(2)in respect of a body of persons – where one of the following applies:
(a)a corporation in which control and management are exercised from outside Israel;
(b)a company registered in Israel as a foreign company; for this purpose, "foreign company" – as defined in section 1 of the Companies Law, 5759-1999.
Non-registration of a resident of the area or a resident of the Gaza and Jericho areas§
60a.
The Director may decline to register a dealer, a non-profit or a financial institution, who is a resident of the area or a resident of the Gaza and Jericho areas and is not an Israeli citizen as defined in section 1a(b), or who is registered under the law corresponding to this Law in the area or in the Gaza and Jericho areas, all where the person does not have a fixed and continuous business or fixed and continuous activity in Israel.
Amendment of registration or its cancellation§
61.
(a)Where the Director has found that a person is registered even though the person is not among those required to register, or that the person's registration as belonging to a particular class of persons required to register is not lawful, the Director may cancel or amend the registration.
(b)Registration upon the application of a person under sections 55 or 56 or registration under section 58 may be cancelled or amended, if the Director has found that the circumstances warrant it.
(c)Where the taxable person has not appointed a representative in accordance with the provisions of section 60 or has not given notice of the appointment of a new representative in accordance with the provisions of that section – the Director may cancel the registration of the taxable person.
(d)The Director may demand from a person registered under sections 52, 55, 56 or 58, who has been convicted by a final judgment of an offence under section 117(b), security to the Director's satisfaction for the securing of the payment of the tax with which that person will be charged after the demand for the provision of the security; where the person has not provided the security as aforesaid, the Director may cancel the person's registration; for the purposes of this subsection –
"person" – as defined in section 52(d);
"substantial shareholder" – as defined in the Companies Law, 5759-1999.
Opportunity to be heard§
62.
Where the Director proposes to act under sections 52(c) or (d), 54, 58, 59, 61, 77b(a) or (b) or 106b(a) otherwise than upon the application of the person concerned, the Director shall give that person an opportunity to present arguments before the Director.
Commencement of validity§
63.
A cancellation or amendment under section 61 and also a classification under section 58 shall take effect thirty days after the month in which the notice was given under section 64, or at another date as prescribed by the Director.
Appeal against Actions of the Director§
64.
(a)Where the Director has acted pursuant to sections 52(b) to (d), 54, 55, 56, 57, 58, 59, 61 or 106b(a), he shall notify the person concerned thereof, and any person who considers himself aggrieved may, within thirty days after the notice has been served upon him, appeal to the District Court.
(b)Where the Director has been requested to act pursuant to the sections referred to in subsection (a) and has not replied to the request within 90 days, he shall be deemed, for the purposes of subsection (a), to have rejected the request.
(c)The filing of an appeal shall stay the execution of the Director's decision, unless the court has decided otherwise.
Regulations concerning Registration§
65.
The Minister of Finance may prescribe supplementary provisions for the implementation of this Chapter, including, inter alia, provisions concerning the obligations of a person whose registration has been cancelled or amended and the ways of deducting input tax that he has not yet deducted, as well as provisions concerning exemption from the obligation of registration for classes of dealers.
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Contact Us →Chapter XI: Books and Reports
Keeping of Books and Records§
66.
A taxable person shall keep books and records in the form and manner prescribed by the Minister of Finance, generally or for classes of dealers or taxable persons.
Periodic Report§
67.
(a)A taxable person shall submit to the Director, in the manner prescribed by the Minister of Finance, a report for each period prescribed by the Minister of Finance as a reporting period for taxable persons generally or for classes (hereinafter – periodic report), provided that a financial institution shall submit separate reports in respect of the wages it paid and in respect of the profit it derived, and the reporting period in respect of profit shall be a tax year.
(a1)(Repealed)
(a2)
(1)Notwithstanding the provisions of subsection (a), for the purpose of determining the reporting period, the reporting period for a dealer whose transaction turnover does not exceed NIS 1,775,000 shall be two months, unless the Minister of Finance has prescribed, pursuant to subsection (a), a longer reporting period for a dealer who satisfies the conditions set out in this subsection, or unless the Director has permitted, at the request of such a dealer and subject to such conditions as he may direct, the submission of a report for a shorter period prescribed by the Minister of Finance pursuant to subsection (a);
(2)The provisions prescribed by the Minister of Finance pursuant to subsection (a) in respect of the reporting period shall apply for the purposes of this subsection, with the necessary modifications.
(b)A periodic report shall be submitted within fifteen days after the reporting period to which it relates, even if there were no business activities or activities requiring the payment of tax during that period, unless the business or activity has ceased entirely and the taxable person has notified the Director thereof in the manner prescribed by the Minister of Finance.
(b1)The final date for submission of a periodic report shall be deferred if, in the five days preceding that date, there were at least three rest days, and it shall fall on the fourth weekday following the end of the consecutive rest days; for this purpose, "rest days" – the rest days established in the State of Israel as defined in section 18a(a) of the Law and Administration Ordinance, 5708-1948, and also the intermediate days of a festival.
(c)The Director may temporarily exempt a taxable person from submitting a report for a period and subject to conditions as he may determine.
(d)The Minister of Finance may exempt from the obligation to submit a periodic report classes of dealers all of whose business consists of exempt transactions or transactions liable to tax at zero rate.
(e)The Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe actions that shall be regarded as actions subject to reporting; actions so prescribed shall be detailed in the periodic report.
Periodic Report for a Dealer Required to Submit Detailed Reporting§
67a.
(a)Notwithstanding the provisions of section 67, a dealer required to submit detailed reporting as referred to in section 69a(g) shall submit to the Director a periodic report for each period of one month commencing on the first day of the month.
(b)(Repealed)
(c)A dealer to whom this Law has been applied for the first time otherwise than on the first day of a given month, his first reporting period under this section shall be the period commencing on the day on which the Law was applied to him and ending at the close of that month.
(d)
(1)A periodic report shall be submitted within 23 days after the reporting period to which it relates, even if there were no business activities requiring the payment of tax during that period, unless the business has ceased entirely and the dealer has notified the Director thereof in the manner prescribed by the Minister of Finance;
(2)(Repealed)
(3)(Repealed)
(e)The final date for submission of a periodic report shall be deferred if, in the five days preceding that date, there were at least three rest days, and it shall fall on the fourth weekday following the end of the consecutive rest days; for this purpose, "rest days" – as defined in section 67(b1).
(f)The Director may temporarily exempt a taxable person from submitting a report for a period and subject to conditions as he may determine.
(g)The Minister of Finance may exempt from the obligation to submit a periodic report classes of dealers all of whose business consists of exempt transactions or transactions liable to tax at zero rate.
(h)The Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe actions that shall be regarded as actions subject to reporting; actions so prescribed shall be detailed in the periodic report.
Online Submission§
67b.
(a)In this section –
"online submission" – the submission of a report, document or form by means of an electronic message;
"electronic message" – as defined in the Electronic Signature Law.
(b)In addition to the provisions of section 72a, the Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe that additional reports, documents or forms required to be submitted to the Director under this Law, all or some of them, shall be submitted online as the sole means of reporting, and he may so prescribe also in respect of a person not subject to an obligation to submit online who has chosen to do so.
(c)Notwithstanding the provisions of subsection (a), the Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe classes of persons required to report who shall be exempt from the obligation of online submission.
(d)The Director may prescribe rules regarding online submission in the following matters:
(1)identification procedures for the purpose of submission;
(2)the manner of submission;
(3)extension of the submission deadline;
(4)the forms and electronic messages to be used for the purpose of submission.
(e)Notwithstanding the provisions of section 2(a) of the Electronic Signature Law, a report, document or form submitted online in accordance with the rules prescribed by the Director pursuant to this section shall be deemed to have been signed.
(f)A report, document or form that was required to be submitted online and was not submitted in that manner shall be deemed not to have been submitted.
Reporting in respect of an Opinion§
67c.
(a)In this section –
"opinion" – a written opinion, signed by the opinion provider, given directly or indirectly to a person and enabling or intended to enable a tax advantage, provided that one of the following conditions is satisfied in respect thereof:
(1)the fee for the opinion, in whole or in part, is contingent on the amount of the tax advantage that will accrue to the recipient of the opinion;
(2)it is a shelf plan;
"tax advantage" – including any of the following:
(1)a discount or relief from tax, deferral of the tax event, reduction of the tax amount or avoidance of tax;
(2)a refund of tax;
(3)a deferral of the date of payment of tax;
"fee" – an amount of at least NIS 100,000 agreed between the parties to be paid for the opinion in respect of the maximum total tax saving that will accrue to the recipient of the opinion;
"shelf plan" – any of the following:
(1)an opinion consisting mainly of uniform content on the same subject, given directly or indirectly by the opinion provider to at least three taxable persons within a period of two years, subject to the provisions of subsection (f), who are not relatives, and which does not depend mainly on the particular circumstances of each taxable person; for this purpose, "relative" – as defined in paragraphs (1) or (2) of section 88 of the Income Tax Ordinance [New Version];
(2)an opinion that was proposed to the recipient by the opinion provider on his own initiative, and the recipient was bound by an obligation of confidentiality regarding its content, in whole or in part.
(b)
(1)A person who has received an opinion shall report thereon in a form to be prescribed by the Director, within 60 days of the end of the tax year in which the tax advantage in respect of the opinion was received, provided that the delivery of the opinion itself to the tax authority shall not be required; such a report shall detail only the following:
(a)the fact of receipt of the opinion;
(b)the transaction or asset discussed in the opinion;
(c)the type of tax issue affected by the opinion, as prescribed by the Director;
(2)Where a person has received an opinion after the end of the tax year, he shall report thereon in the form referred to in paragraph (1), within 60 days of the day on which he received it.
(c)A report referred to in subsection (b) shall be submitted online and the provisions of section 67b shall apply thereto.
(d)Notwithstanding the provisions of subsection (b), a person shall not be liable to report –
(1)in respect of a shelf plan as referred to in paragraph (1) only of the definition of "shelf plan" in respect of which no notice has been given pursuant to subsection (f);
(2)in respect of an opinion given to him regarding issues that were dealt with in assessment, objection or appeal proceedings, provided that the opinion was given during the period in which the assessment, objection or appeal proceedings are taking place, and in respect of that reporting period only.
(e)A person who has given an opinion that constitutes a shelf plan under paragraph (1) of the definition of "shelf plan" shall notify the recipient thereof, provided that the recipient is the third or subsequent person to whom the opinion has been given.
(f)The provisions of this section shall not apply to a public institution as defined in section 9(2) of the Income Tax Ordinance [New Version], to a body of persons as referred to in paragraph (2) of the definition of non-profit organisation, or to a dealer whose transaction turnover does not exceed NIS 3,000,000.
Adoption of a Reportable Position§
67d.
(a)In this section –
"tax advantage" – as defined in section 67c;
"reportable position" – a position satisfying all of the following:
(1)it is contrary to a position published by the tax authority by the end of the preceding tax year;
(2)the tax advantage deriving therefrom exceeds NIS 2,000,000 per year or NIS 5,000,000 over a period of not more than four years.
(b)
(1)The position of the tax authority as referred to in paragraph (1) of the definition of "reportable position" shall be published in a dedicated location on the tax authority's website, after the Israel Bar Association, the Institute of Certified Public Accountants in Israel and the chamber as defined in the Law for the Regulation of the Practice of Representation by Tax Advisers, 5765-2005, have been given a reasonable opportunity to present their arguments regarding it prior to its publication;
(2)The position of the tax authority shall be formulated in clear and intelligible language;
(3)
(a)the number of positions to be published by the tax authority shall not exceed 25 per year; where the tax authority wishes to publish additional positions in the same year, the Minister of Finance shall submit to the Finance Committee of the Knesset for approval the additional number of positions sought as aforesaid;
(b)notwithstanding the provisions of sub-paragraph (a), in the years 2016 and 2017 the tax authority shall be entitled to publish 50 positions per year.
(c)A person adopting a reportable position shall report thereon in a form to be prescribed by the Director, within 60 days of the end of the tax year in which he adopted a reportable position as aforesaid; the provisions of section 67c(c) shall apply to a report under this subsection.
(d)The provisions of this section shall not apply to a public institution as defined in section 9(2) of the Income Tax Ordinance [New Version], to a body of persons as referred to in paragraph (2) of the definition of non-profit organisation, or to a dealer whose transaction turnover does not exceed NIS 3,000,000.
Provisional Report§
68.
(a)A taxable person who does not know the particulars he is required to detail in the report may submit in its place a provisional report, in which he shall detail in estimated terms the particulars not known to him.
(b)A provisional report shall not be submitted if, within the year preceding the commencement of its period, at least two provisional reports have already been submitted; however, the Director may authorise classes of dealers or a particular dealer to submit provisional reports generally or in respect of specific reporting periods, and he may prescribe the date or dates on which they shall be submitted and may make his authorisation subject to conditions.
(c)Where a provisional report has been submitted, the periodic report shall be submitted within thirty days thereafter.
Particulars of a Dealer's Report§
69.
(a)A dealer's periodic report shall include the total of all transactions in respect of which the date for issuing invoices falls within the reporting period, even if the dealer has been exempted from issuing invoices, as well as the total of all transactions in respect of which tax invoices have been issued even if the date for issuing them has not yet arrived, provided that they have not been included in a previous periodic report.
(b)Where a dealer has transactions liable to tax and transactions liable to tax at zero rate or exempt transactions, he shall detail separately the total of all transactions of each type and the tax applicable thereto.
(c)The periodic report shall indicate separately the total of all the dealer's purchases, including imports, and the total of all services received by him, the amount of deductible input tax in documents as referred to in section 38 that were lawfully issued to him before the end of the reporting period, and any other particulars prescribed by the Minister of Finance.
Particulars of a Periodic Report for a Dealer Required to Submit Detailed Reporting§
69a.
(a)Notwithstanding the provisions of section 69, the periodic report of a dealer required to submit detailed reporting as referred to in subsection (g) shall detail all of the following, provided that they have not been included in a previous periodic report:
(1)all tax invoices in respect of which the date for their issuance falls within the reporting period, even if the dealer has been exempted from issuing them, and their total amount;
(2)all tax invoices issued by the dealer, even if the date for their issuance has not yet arrived, and their total amount;
(3)the total amount of all transaction invoices in respect of which the date for their issuance under section 46 falls within the reporting period, even if the dealer has been exempted from issuing them, and the total tax amount deriving therefrom;
(4)all export declarations and every other document approved by the Director pursuant to section 30(a)(1) bearing the dealer's name, in respect of which goods included therein have been released during the reporting period and which are included in the report, and the total amount of each type of document as aforesaid;
(5)all tax invoices, import declarations and every other document approved by the Director pursuant to section 38(a) on the basis of which the dealer claims in the report to deduct input tax pursuant to that section, and the total amount of each type of document as aforesaid.
(b)In respect of each tax invoice and other document approved by the Director, the periodic report shall detail their serial number, their symbol according to the designation prescribed for them by the Director, their date, their amount and the tax amount deriving therefrom, as well as the registration number of the seller or service provider, as the case may be, and the registration number of the buyer, and in respect of each tax invoice bearing a number allocated to it by the Director – that number shall be indicated, and in respect of each import declaration and each export declaration referred to in subsection (a) – their serial number shall be detailed.
(c)Notwithstanding the provisions of subsections (a)(1) and (2) and (b), a dealer shall be exempt from detailing tax invoices each of which does not exceed NIS 5,000 exclusive of tax, provided that the total amount of those invoices shall be detailed in the report; the Director, with the approval of the Finance Committee of the Knesset, may amend the said amount.
(d)Notwithstanding the provisions of subsections (a) and (b), and without derogating from the provisions of subsection (c), the Director may exempt a dealer from detailing the invoices referred to in subsection (a), or from detailing the other documents approved by the Director referred to in that subsection, in whole or in part, by reason of the amount of each of those invoices or the amount of each of the other documents, as the case may be, provided that the total amount of those invoices or those other documents, as the case may be, shall be detailed in the report; an exemption under this subsection may be granted generally or for classes of dealers or transactions, all as the Director may determine.
(e)Where a dealer has transactions liable to tax and transactions liable to tax at zero rate or exempt transactions, he shall detail separately all transactions of each type, the tax applicable thereto and their total amount.
(f)The periodic report shall indicate separately the total of all the dealer's purchases, including imports, and the total of all services received by him, the amount of deductible input tax in documents as referred to in section 38 that were lawfully issued to him before the end of the reporting period, and any other particulars prescribed by the Minister of Finance.
(g)The provisions of this section shall apply to a dealer in respect of whom one of the following conditions is satisfied (in this Law – a dealer required to submit detailed reporting):
(1)his transaction turnover exceeds NIS 500,000 or he is required to keep accounting books under the double-entry bookkeeping method by virtue of bookkeeping provisions prescribed pursuant to section 130 of the Income Tax Ordinance [New Version];
(2)(Repealed)
(3)the Director has permitted the dealer, at his request, to submit a report under this section, subject to such conditions and adjustments as the Director may direct.
(h)(Lapsed)
Reports of a Non-Profit Organisation and a Financial Institution§
70.
(a)A non-profit organisation's periodic report shall include the total of all wages it paid during the reporting period, and the periodic reports of a financial institution shall include, in one – the total of all wages it paid, and in the other – the total of all profits it derived.
(b)A non-profit organisation whose turnover in the determining year exceeds NIS 20,000,000 and a financial institution whose turnover in the determining year exceeds NIS 4,000,000 to which a tax invoice has been issued during the reporting period in respect of the purchase of an asset or the receipt of a service from a dealer, shall submit, at the time of submitting the periodic report, a special report thereon; such a report shall detail the serial number of the invoice, its symbol according to the designation prescribed for it by the Director, its date, its amount and the tax amount deriving therefrom, as well as the registration number of the seller or service provider, as the case may be; in this subsection –
"turnover" – as defined in the bookkeeping provisions prescribed pursuant to section 130(a)(4) of the Income Tax Ordinance [New Version];
"determining year" – the tax year preceding the tax year that has passed.
(c)The Director may exempt classes of non-profit organisations or financial institutions as referred to in subsection (b) from submitting a special report as referred to in that subsection, and he may likewise exempt a particular non-profit organisation or a particular financial institution, generally or in a special case, from submitting such a report, if he has found that there are special reasons justifying this in the circumstances of the matter.
Supplementary Report§
71.
Where particulars that should have been included in a periodic report have been omitted therefrom, the Director may permit a taxable person to submit a supplementary report; where the Director has so permitted, the particulars of the supplementary report shall not be annexed to another report.
Summary Report for Dealers Registered as One§
71a.
(a)Each of the dealers registered as one pursuant to section 56 shall submit an annual summary report on the total of all his transactions, including transactions carried out with the dealers registered together with him as one and also on the total of all his purchases and all services received by him, including from the dealers registered together with him as one, all within 90 days of the end of the tax year in respect of which the report is submitted.
(b)The Director may exempt classes of dealers registered as one as referred to in subsection (a) from submitting an annual summary report or from detailing the transactions carried out with the dealers registered together with them as one, and he may likewise exempt a particular dealer registered together with other dealers as one, generally or in a special case, from submitting a report or from detailing as aforesaid, if he has found that there are special reasons justifying this in the circumstances of the matter.
Requirement for Additional Particulars, Additional Reports and Auditor's Confirmation§
72.
(a)The Director may require, generally or specifically or for classes, the submission of additional reports beyond the periodic reports, all for periods and at dates as he may determine, and the submission of an annual summary report and a report on inventory.
(b)The Director may require an authorised dealer that is a body of persons, generally or specifically or for classes, to submit balance sheets and tax reconciliation accounts; he may also require such a body of persons that an annual summary report, a periodic report in which a tax refund is claimed pursuant to section 39, and a report of another type prescribed by the Minister of Finance be confirmed and reconciled for tax purposes by an auditor.
(c)In a body of persons that is a cooperative society affiliated with a supervisory union, a supervisory union official duly registered with the Registrar of Cooperative Societies may replace an auditor as referred to in subsection (b).
(d)The Director may require a person who has confirmed a report pursuant to subsections (b) or (c) to provide him with information on the scope of the audit conducted and its findings.
Online Submission of Reports§
72a.
(a)Reports under sections 67a(a), 68(a), 70(a) and (b), 71 and 71a shall be submitted online, in accordance with the rules prescribed by the Director pursuant to section 67b(d), and the provisions of section 67b shall apply.
(b)The Director may require that additional reports he has prescribed pursuant to section 72(a) be submitted online as referred to in subsection (a).
Postponement of the Time for Submission of the Report§
73.
The Director may postpone the times for submission of reports, generally or specially or by categories, provided that a postponement for a particular taxable person shall be made only for special reasons that shall be recorded; if the time for submission of a periodic report has been postponed, the taxable person may submit a provisional report and section 68 shall apply with the necessary modifications.
Refusal to Accept a Report§
74.
(a)If a taxable person did not, in a particular period, keep books of account, or kept them with a deviation from the provisions of this Law or the Regulations made thereunder that was material for the purpose of determining the turnover of transactions or the tax, or if the documents on which the books are based were not kept in accordance with the provisions, the Director may refuse to accept any report relating to the tax year that includes the reporting period in respect of which the said deficiencies were discovered; if the Director refused to accept a report, the taxable person shall be deemed, for the purpose of section 76, as if he had not submitted a report.
(b)The Director shall notify the taxable person of the refusal and shall set out his reasons for the refusal.
(c)The taxable person may appeal against the refusal before the District Court or lodge an appeal against it before a Books Admissibility Committee established pursuant to section 127 (hereinafter – the Books Admissibility Committee), within fifteen days of receipt of the notice under subsection (b), however, against a refusal on grounds enumerated in subsection (a) concerning the unlawful issuance of a tax invoice, or the deduction of input tax included in a tax invoice that was issued unlawfully, the taxable person may appeal only before the District Court.
(d)If an appeal has been submitted, the Director shall treat the report as if it had been duly submitted so long as the court or the Committee has not decided otherwise.
(e)The submission of an appeal under this section does not replace the submission of an objection under section 82; if the appeal was dismissed, the books of account shall be deemed inadmissible for the purpose of the appeal against the assessment.
(f)A taxable person who has not submitted an appeal under this section may appeal against the refusal together with the appeal under section 83.
Retention of Books and Documents§
75.
Books of account of a taxable person that are required to be kept pursuant to this Law, the documents on which they are based, and his purchase invoices, shall be retained by him for seven years, or a shorter period determined generally or by categories, from the date of the last entry in the book or from the date on which the purchase invoice was issued, whichever is the later.
Database§
75a.
(a)Information detailed in a periodic report of a dealer required to report in detail as stated in section 69a(g), in a provisional report under section 68 of such a dealer and in a supplementary report under section 71 of such a dealer, as well as in the special report under section 70(b) or in an annual summary report under section 71a, shall be retained as a database, within its meaning in the Privacy Protection Law, 5741-1981, for a period not exceeding five years from the date of submission of the said report, as the case may be.
(b)Notwithstanding the provisions of subsection (a), if the Director ordered, within the period specified in that subsection, an examination of the books of the taxable person, or if an investigation has commenced regarding a suspicion of the commission of an offence under this Law by the taxable person, the information detailed in the periodic report, the provisional report, the special report, the supplementary report or the annual summary report, as the case may be, submitted by the taxable person and relating to the examination or investigation, as the case may be, shall be retained until the conclusion of the proceedings under this Law.
(c)Information retained as stated in subsections (a) or (b) shall be deleted upon the expiry of the period referred to in those subsections, as the case may be.
(d)The Director or a person authorised by him for this purpose from among the employees of the Israel Tax Authority may, for the purpose of implementing the provisions under this Law, make use of information retained as stated in subsections (a) or (b), provided that such use is required for the purpose of conducting an audit, for the purpose of an assessment, for the purpose of collection, or for the purpose of an investigation regarding a suspicion of the commission of an offence under this Law by the taxable person, and to the extent required.
(e)Nothing in the provisions of subsection (d) shall derogate from the provisions of the Law for the Amendment of Tax Laws (Exchange of Information between Tax Authorities), 5727-1967.
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