01
Obstacle
VAT return is assembled manually from spreadsheets every two months — error-prone and time-consuming.
Solution
ITA-cleared invoices feed the PCN874 automatically; the return is ready to submit with one review.
Tax Authority & VAT File Registration
Every Israeli business must open a VAT file with the Israel Tax Authority. The PCN874 periodic return is the cornerstone of VAT compliance — and ITA-cleared invoices are its data foundation.
02
Obstacle
Input VAT claimed on invoices without an allocation number gets disallowed on audit.
Solution
System validates the allocation number on every incoming invoice before booking input VAT.
What is the VAT rate in Israel?
The standard VAT rate is 18 % as of 2025 (raised from 17 %). Exports of goods and certain services are zero-rated.
PCN874 without the spreadsheet marathon
Cleared invoices → automatic VAT data → ready-to-submit return.
