Nicolas Jérome Guérinet
For bookkeeping purposes, can invoices be in English or should we create an Invoice in Estonian for every Invoice in English?
That is an interesting questions, I did not see any information about the need to have a bookkeeping in Estonian but I could be wrong. Let us know if you find the answer.
Lynwood Sewell Bell
In addition to "language" I expect the issue of VAT should also be explored. I am also interested in answers to both for my Estonian company - Hansadvisory OU. Cheers, Lyn
The invoices can be in English. There is no need to create a duplicate in Estonian.
@Prospera Do you have any sources regarding that?
It's a good question that has a simple answer: you can issue invoices in English. If you look at the Accounting Act, you see that it does not mention anywhere in which language your invoices have to be. This means there is no reason to think otherwise.
Here's the list of requirements concerning the source documents (including invoices):
§ 7. Source documents
(1) An accounting source document is a document which certifies a business transaction and which contains the following information:
- the name and number of the document;
- the date of preparation of the document;
- the economic substance of the transaction;
- the figures relating to the transaction (quantity, price and total amount);
- the names of the parties to the transaction;
- the addresses of the registered offices or places of residence of the parties to the transaction;
- the signature(s) certifying the business transaction, given by the person representing the accounting entity who records the business transaction in the accounts thereof;
- the number of the corresponding accounting entry.
(2) The requirements provided for in clauses (1) 6)–8) of this section do not apply to source documents if the information specified in those clauses has been recorded in a summary document prepared on the basis of the corresponding source documents.
(3) Adjusting entries made upon preparation of financial statements shall be supported by adjusting entry documents. In an adjusting entry document, the requisite information specified in clauses (1) 5) and 6) of this section shall be replaced by the name of the person who prepared the source document.
(4) It shall be possible for source documents preserved in electronic form to be reproduced in writing.
What is important to know is that the board members of an Estonian company have the obligation to preserve accounting source documents for seven years as of the end of the financial year during which the source document was recorded in the accounts.
The Accounting Act is in English, so if someone is interested, you can see it from here: https://www.riigiteataja.ee/en/eli/ee/501042014003/consolide/currentlast edited by Ivar Veskioja
Thank you for this precise reply!