Is Koopax approved by the Tax Authority?
Everything worth knowing about Tax Authority approval and what the law requires
When choosing a register for your business, one of the most important considerations is Tax Authority approval. Let's look at what that means, why it matters, and what the Israeli Tax Authority actually requires.
✅ Yes! Koopax is Tax Authority approved
Koopax meets every requirement of the Israeli Tax Authority and is approved for full use under the law.
📌 Basic tax requirements for a register in Israel
📍 The obligation to run a register
Business owners must operate a register in line with the Income Tax Regulations (Keeping of Account Books) — including recording every receipt and payment as the law requires.
The register is expected to provide an audit roll containing every action taken (item prices, discounts, total sales, cash and card totals and so on), as well as Z and X reports as the regulations require.
📄 Reporting requirements for open-format files
🧾 What is an "open-format file"?
The Israeli Tax Authority requires accounting software and computerised registers to be able to produce computer files in the unified (open) file format, so that register data can be produced, exported and passed to the tax authorities in a standard, shared form.
📌 The main requirements:
- The system must include a module or capability to produce open-format files according to Tax Authority instructions
- An application to register software with the authorities must include a demonstration of an open-format file checked against the official simulator
- The file must contain all the data set out in the Tax Authority's instruction booklet (fields, headers, format)
📌 An example of what a software submission requires:
When submitting the registration form for computerised accounting software, you must attach:
- Simulator output confirming the open-format file is valid
- Printed output matching the sections defined in the format instructions
📥 Official instructions for open-format file components
The Tax Authority has published a document, "Instructions for producing files in the unified format", which sets out:
- How to trigger creation of the file
- Where it is saved
- Record headers in the unified format
- Field specifications
- The process for completing and producing the file
The document exists to ensure a uniform specification of accounting system data and its records, so that register data can be read and audited regardless of which software produced it.
📌 Worth knowing:
The document covers the record structure, field types and technical constraints — and it is the basis for building a compliant interface with the Tax Authority. Koopax meets every one of these requirements!
📑 Relevant links to Tax Authority services
Official information from the government site:
🧠 Further points worth noting
- 📌 Keeping account books also covers the register rolls, as one part of running the business's accounting system
- 📌 Open-format files make it easy to move between software packages and simplify a tax audit
- 📌 The Tax Authority defines measures, simulators and validation tests for the file as part of registering a system
What does Koopax include?
✅ Koopax produces:
- ✅ Tax invoices in the unified format
- ✅ Credit notes
- ✅ Receipts
- ✅ Z reports (end of day)
- ✅ X reports (interim report)
- ✅ Open-format files for the Tax Authority
- ✅ A complete audit roll
The unified format — what is it?
The Tax Authority requires every invoice to carry specific information in a uniform format. Koopax makes sure every invoice includes:
- The business name and VAT registration number
- The date and time of the transaction
- A sequential invoice number
- A breakdown of the products or services
- Amounts including VAT
- A QR code (under the new requirement)
Why does it matter that the system is approved?
1. It is a legal obligation
Under Israeli law, every business must use a Tax Authority approved register. If it does not, heavy fines are possible.
2. Legal certainty
Tax Authority approval means you are legally protected and operating within the law.
3. Accurate reports
An approved system means your reports are correct and precise, which keeps you out of trouble with the authorities.
Legislative updates
One of the advantages of Koopax: we update automatically as the legislation changes!
If the Tax Authority changes a requirement or adds a new obligation, the update reaches your system automatically.
How do you check your system is approved?
It is simple:
- Check that the system has a Tax Authority approval number
- Make sure the number appears on the Tax Authority site
- Check that your invoices carry every required detail
- Make sure the system produces open-format files
⚠️ A warning
Do not use an unapproved register! It can lead to heavy fines and legal trouble. Always check that a system is approved before buying it.
Common questions
How often does the approval need renewing?
The approval holds as long as the system does not change substantially. Koopax takes care of every update that is needed.
Is there a charge for the approval?
No. The approval is part of the system and there is no separate charge for it.
What happens when the legislation changes?
Koopax updates itself automatically and you receive a notice about the update. There is nothing for you to do.
What is an "open-format file" and why does it matter?
It is a file in a standard format that the Tax Authority can read and check. Koopax produces it automatically.
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