Israel Self-Invoice

Self-invoice is an invoice that the company itself issues internally and is the one that reports the transaction to the tax authorities, both VAT on purchases and VAT on sales.

Creating a Self-Invoice

For a Self-Invoice, a specific customer and vendor need to be set up. To do this, you need the company tax registration and TaxPayer ID.

To find the VAT registration number:

Go to Setup > Company > Subsidiaries.
Click View on the record of the selected subsidiary.
On the Subsidiary page, the VAT Registration No. field should be populated with a 9 digit number. Copy the number as you will need it for setting up a customer.

To set up customer for self-invoice:

Go to Lists > Relationships > Customers > New.
From the Custom Form field, select IL Customer Form.
Fill out the required fields, and then do the following:
1. In the Tax Registration Number field, enter the VAT registration number taken from your subsidiary details.
2. On the Financial subtab, from the Terms list, select Immediate.
Click Save.

To define default customer VAT code:

Go to Lists > Relationships > Customers.
Click the Edit next to the applicable customer.
To define the default VAT on sales self-invoice, do the following:
1. Click the Financial subtab.
2. On the Tax Information subtab, from the Tax Item list, select ILM – מע"מ עסקאות חשבונית עצמית – Self Invoice Sales Tax.
Click Save.

To set up vendor for self-invoice:

Go to Lists > Relationships > Vendors > New.
From the Custom Form list, select IL Vendor Form.
In the Taxpayer ID field, enter the taxpayer ID taken from the subsidiary details.
On the Financial subtab, from the Terms list, select Immediate.
Click Save.

To define default vendor VAT code:

Go to Lists > Relationships > Vendors.
Click the Edit next to an Israeli vendor.
Click the Subsidiaries subtab.
To define the default VAT on Purchase self-invoice, from the Tax Code list, select ILC – מע"מ תשומות חשבונית עצמית – Self Invoice Purchase Tax.
Click Save.

To open a new offset account:

Go to Lists > Accounting > Accounts > New.
Enter account number and account name.
From the Type list, select Other Current Liability.
From the Subsidiaries list, select the Israeli subsidiary and name it Self Invoice.
Click Save.

To define item for self-invoice:

Go to Lists > Accounting > Items> New.
From the Item Type list, under the Non-inventory Item select the For Sale.
In the Item Name/Number field, enter Self Invoice.
On the Accounting subtab, from the Income Account list, select the Self Invoice account created in the previous step.
Select a Tax Schedule from the list.
Click Save.

Vendor bills can be created using either an Item or an Expense. If you use an item, this must be created on the purchase side using the same expense accounts.

Resale items can be used on both Invoices and Vendor Bills.

Creating a Customer Self-Invoice

With the Israel Localization SuiteApp, you can create a customer self-invoice.

To create a customer self-invoice:

Go to Transactions > Sales > Create Invoices.
From the Custom Form list, select the IL Product Invoice form.
From the Customer Project list, select Self-Invoice Customer.
Ensure that the customer invoice and vendor bill date, currency, VAT periods, amounts and invoice number are the same as on the Self-invoice Vendor Bill. For more information, see Creating a Vendor Self-Invoice.
On the Items subtab from the Item list, select Self-Invoice Item.
Enter the amount.

Note:
The invoice amount includes VAT.
From the Tax Code list, select ILAR:ILM – מע"מ עסקאות חשבונית עצמית – Self Invoice Sales Tax.

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Select the location.
Click Add.
Save the invoice.

Tip:

Note the invoice number for the following procedure.

To receive a payment for self-invoice:

Go to Transactions > Sales > Create Invoices > List.
Search for the invoice created in the previous step. The invoice number must match with the document number.
Click View.
Click the Accept Payment button.
Select the Account radio button and select the self-invoice account.

If the Tax Registration Number is the same as the company VAT number, the system automatically detects that it is a self-invoice and the invoice title on the printed Invoice Transaction PDF changes accordingly to Self Tax Invoice.
Click Save.

Creating a Vendor Self-Invoice

With the Israel Localization SuiteApp, you can create a vendor self-invoice.

To create a vendor self-invoice:

Go to Transactions > Payables > Enter Bills.
From the Vendor Name list, select the self-invoice vendor.
Copy the invoice reference number used for Creating a Customer Self-Invoice to the vendor bill Invoice Number.
Click the Expenses and Items subtab, and on the first line do the following:
1. Select the Self-invoice expense.
2. From the Tax Code list, select ILC – מע"מ תשומות חשבונית עצמית – Self Invoice Purchase Tax.
3. Click Add.
On the second line, do the following:
1. From the Account list, select the Self invoice account.
2. In the Amount field, enter the amount, which should be a negative number (-).
3. From the Tax Code list, select ILAP:IL–מע"מ תשומות לא לדיווח – VAT on Purchase not for Reporting.
4. Click Add.
Click Save.

To make a vendor bill payment for self-invoice:

Go to Transactions > Payables > Enter Bills.
Click Edit on a vendor bill record.
Click Make Payment
Fill in the required fields.
To finish the payment, click Save.

Reporting for Self-Invoice

The offset account total resets at the end of the process.

General Notices