PCN874 Report: Israel 
In line with tax reporting requirements in Israel, you are required to submit a PCN874 report electronically to the Israel Tax Authority on a monthly basis.
SAP Business One helps you to generate a PCN874 report in the electronic file format to be submitted to the tax authorities.
You can use this report either for general tax reporting or for tax refund reporting. It includes:
All A/R invoices and journal entries, both tax-exempt and tax-liable (VAT)
All tax-liable A/P invoices and journal entries (VAT)
Tax-exempt A/P invoices and journal are not included in the PCN874 report.
PCN874 reports require data concerning the following document types:
Document Type |
Value |
Description |
Self-employed expenses |
C |
A/P invoices involving vendors classified as self-employed. |
Input tax — other |
H |
Transactions that are not assigned to a document type and that are classified by transaction code. |
Income from sales to Palestinian Authority customers |
I |
Income from sales to customers with a ship-to address in the Palestinian Authority and with a federal tax ID, as defined in business partner master data. |
Input tax — petty cash |
K |
Small cash payments not linked to a vendor. |
Regular income from sales to undefined customers |
L |
Income from sales to customers without a federal tax ID in business partner master data and below the threshold defined by the tax authority.
The PCN874 report does not include VAT-exempt purchasing transactions. End of the note. |
Self — employed income |
M |
A/R invoices involving customers classified as self-employed. |
Input tax — Palestinian Authority A/P invoice |
P |
Transactions involving vendors with a ship-to address in the Palestinian Authority and with a federal tax ID, as defined in business partner master data. |
Input tax — import log |
R |
Manual transactions created for import entries. |
Regular income |
S |
Income from sales to customers with a ship-to address in Israel and with a federal tax ID, as defined in business partner master data. For the PCN874 report, a customer is considered as based in Israel if related business partner master data or documents do not contain a ship-to address. |
Regular input tax |
T |
Purchasing transactions from vendors with a ship-to address in Israel and with a federal tax ID as defined in business partner master data.
The PCN874 report does not include VAT-exempt purchasing transactions (ship-to address in business partner master data outside Israel or Palestinian Authority). End of the note. |
Tax-exempt income |
Y |
Transactions involving vendors with an overseas billing address and defined as tax-exempt in business partner master data. Overseas vendors do not have a federal tax ID. |
Note