Do I need to file PCN874?
From 1.1.2026 Israeli self-employed individuals whose annual turnover exceeds ₪500,000 must submit the detailed VAT report (PCN874). Companies and partnerships are already obligated from 1.9.2025 at any turnover. Check instantly whether the rule applies to you.
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How to actually file PCN874
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Verify the threshold and update your VAT registration
Check your cumulative 2025 turnover (gross, pre-VAT, including exempt transactions). If it exceeds ₪500,000, update your VAT classification to detailed-monthly reporter via the personal area or a regional office visit, and make sure you have an active tax-invoice allocation number.
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Prepare bookkeeping and generate the PCN874 file
In your bookkeeping software (Hashavshevet, Rivhit, Fullness Invoice, etc.) activate the PCN874 export for the reporting month. The file is TXT in ASCII, opening with an O header record, followed by detail records (S/L for sales, T/K for purchases), and closing with an X footer. All fields are fixed-width and amounts are in whole shekels.
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Internal validation against the regular periodic report
Before submitting, compare the header totals (chargeable sales, output VAT, input VAT, net-to-pay) with the amounts on the regular 830 report. Discrepancies over one shekel usually mean rounding differences, missing allocation numbers, or credit notes with the wrong sign — fix them first.
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Submit the file via the ITA personal area
Log in to the dealer personal area at the Israeli Tax Authority website, choose "Detailed VAT report", upload the TXT file, and confirm the displayed summary. The system runs automated validation and returns a success confirmation or a list of errors; fix and re-upload until you get accepted, before the 23rd of the month.
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Pay net VAT and archive the confirmation
After acceptance, pay the net VAT (output minus input) via the online voucher or direct-debit authorisation. Archive the TXT file, the acceptance confirmation, and the payment receipt for at least 7 years, in case of future audit.
PCN874 frequently asked questions
Is an Osek Patur (exempt dealer) required to file PCN874?
No. An Osek Patur (annual turnover under ~₪120,000) does not file any periodic VAT report and therefore never PCN874. The 2026 obligation applies only to individual Osek Murshe with annual turnover over ₪500,000, and to companies + partnerships already obligated from 1.9.2025 at any turnover.
When exactly is the report due — the 23rd or the 25th?
The detailed report is due by the 23rd of the month following the reporting period (not the 25th like the regular periodic report), for every dealer obligated to detailed reporting. For example, the January 2026 report is due by 23 February 2026, together with the net VAT payment.
Does moving to detailed reporting change my reporting frequency?
Yes. A dealer required to file detailed reports automatically moves to monthly filing (every month), even if they previously reported bi-monthly. Once you cross the threshold you cannot revert to bi-monthly, and the first reporting period in practice is January 2026.
What happens if I file but accidentally omit an invoice or misstate an allocation number?
The Israeli Tax Authority cross-checks the PCN874 file against the regular periodic report and against counterparty files. Discrepancies trigger a written clarification request, delay VAT refunds, and — on repeat offences — lead to a late-filing penalty and monetary sanction. Fixes are submitted via a Corrected file for the same period.
Can I get a deferral to 2027?
An individual dealer whose turnover crossed the threshold but whose expense invoices are dominated by low-value invoices (< ₪5,000, either by amount ≥ 90% or by count ≥ 90%) may request a one-year deferral to 2027. The request is filed via the VAT personal-area portal and requires approval and no material change to the expense profile.