How do I record payments received in Israel?
In this period of Corona Virus, several entrepreneurs have decided to "reinvent" the idea of local commerce. But is there a procedure for recording payment receipts in Israel?
Home delivery, street delivery, traditional sales in a store or boutique, there are several ways to receive money from your customers.
But do you have a well-defined procedure for recording payments?
We strongly recommend that every company establishes a clear and detailed procedure for recording receipts.
With this directive in place, be sure to get your employees to sign this form.
Already have a procedure in place? Consider holding quarterly meetings to "refresh your employees' memories". An informed man is worth two.
This can be used as evidence in the event of a tax audit in Israel.
Remember: if you don't have a clear policy/guideline in place, you alone can be held responsible.
Here's the procedure for noting receipts in Israel:
Procedure for recording payments received in Israel.
1 . The purpose of this procedure is to provide instructions to each employee of the company / firm as to how and when to record receipts received from customers. Including receipts from suppliers or others (reimbursement, delivery note etc...).
2. A receipt must be issued for all payments received by cash, cheque or credit card, immediately after receipt and before any other transaction.
3. Receipts must also be issued outside the place of business, if it is customary to receive payments outside the place of business (for example, by a sales agent or on delivery).
4. The term "receipt - Kabala" includes: cash, deferred cheques, security cheques, deposit cheques, credit cards, goods of real value (other than cheques made out to someone other than the employer).
5. A separate receipt must be issued for each payment. The receipt will be generated from the management software or will be saved in a pre-numbered book (including a manual receipt when the receipt-issuing software is invalid or when the power is interrupted).
6. On the receipt, indicate the paying customer's name, address (if known) and identity number (in the case of a business customer). If the ordering party is not the customer, the details of the ordering party and those of the customer for whom payment is being made are specified.
7. In the section reserved for proof of payment, indicate the amount received and the form of payment: cash, cheque or credit card. (The receipt will specify the cheque number and the details of the bank account on which the cheque is drawn).
8. In any transaction exceeding NIS 11,000, cash (expressed in NIS or foreign currency) may not exceed 10% of the transaction value or NIS 11,000 of the transaction value, whichever is lower.
Read also: how do cash payments work in Israel?
9. You must provide your customer with the original receipt before they leave your premises.
10. Payments received will only be held by the establishment until you deposit them in the company's bank account.
11. If the company is subject to an income tax or VAT audit, the manager must be informed immediately before giving any information to visitors.
12. I confirm that I have understood the contents of this procedure, that all the details requested about me have been provided and that I undertake to act solely in accordance with this procedure.
13. I certify that failure to comply with this procedure constitutes a serious breach of discipline towards the employer and may cause serious prejudice to the employer, for which I may be personally liable and even terminate my employment with the company.
14. I certify that the importance of the existence of the procedure is absolutely clear to me and, as proof, I hereby undersign:
Employee's signature date