As part of their international operations, companies often wonder whether issuing invoices only in a foreign language is in accordance with the applicable legislation.
In the era of the rise of Internet sales and business in the clouds, limiting business to the native language seems like redundant bureaucratization. Most companies that do business internationally only issue invoices in a foreign language (usually in English), which inspectors usually do not sanction.
Issuing invoices in a foreign language from a tax point of view
From the point of view of tax legislation, it is not necessary for the invoice to be issued in the Slovenian language. An invoice issued to a foreign legal entity or a foreign natural person may only be issued in a foreign language. However, in accordance with Article 32 of ZDavP-2, the tax authority may, in case of doubt regarding the content of the issued invoice, request its translation. If the taxpayer does not submit the translation within the deadline, the tax authority will order it at the taxpayer’s expense.
Issuing invoices in a foreign language from the point of view of other legislation
In addition to tax regulations, the use of Slovenian in business is primarily governed by the Act on Public Use of Slovenian (ZJRS) and the Consumer Protection Act (ZVPot). Article 14 of the ZJRS stipulates that all legal entities under private law and natural persons performing registered activities must do business with customers in the territory of the Republic of Slovenia in Slovenian. When their business is also aimed at foreigners, a foreign language can be used in addition to Slovenian. Companies must therefore always issue invoices in Slovenian as well. Regardless of whether it is business in the territory of the Republic of Slovenia or international business.
What about fines in case of violations?
For violation of the provisions of Article 14 of this Act, the ZJRS foresees a fine of between 3,000 and 40,000 euros for a legal person of a sole proprietor, an individual or an individual who carries out an activity independently (from 1,200 to 4,000 euros, the responsible person of a legal person or (individual self-employed person), if he does not conduct business with Slovenian clients in the Slovenian language when carrying out his registered activity in the territory of the Republic of Slovenia, or if he does not ensure the prescribed use of the Slovenian language in the internal business of natural and legal persons in accordance with Article 16 of this Act. Therefore, the ZJRS is limited to fines only for business in the territory of the Republic of Slovenia with Slovenian clients, but the Inspectorate of the Republic of Slovenia for Culture and Media explains in practice that when issuing invoices in addition to a foreign language, the mandatory use of Slovenian is also required.
What about practice?
In practice, there is practically no sanctioning of business entities in the case of issuing invoices in international business only in a foreign language. The same applies to requests for translation by the tax authority. Companies and entrepreneurs behave differently in international business. Some keep issued invoices in Slovenian and a foreign language, but most of them keep issued invoices only in a foreign language. The functionality of the information system they use also has a significant impact on the decision. In any case, it is recommended that they use the Slovene language when doing business according to the existing legislation, as far as possible.