Do foreign invoices have to be translated into Vietnamese?

Do foreign invoices have to be translated into Vietnamese? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Do foreign invoices have to be translated into Vietnamese?

According to Clause 1, Article 3 of Decree 123/2020/ND-CP, invoice means an accounting record which is created by a goods seller or service provider to record information about the sale of goods or service provision. Invoices are represented in the electronic form or are printed according to orders placed by tax authorities.

Accordingly, Clause 1, Article 11 of the Law on Accounting 2015 stipulates that the language of accounting shall be Vietnamese. Where a foreign language must be used on an accounting record, accounting book, or financial statement which is used in Vietnam, it is required to use both Vietnamese and that foreign language.

At the same time, Clause 5, Article 5 of Decree 174/2016/ND-CP stipulates accounting records as follows:

- Primary contents of accounting records in foreign languages used for recording accounting books and preparing financial statements in Vietnam must be translated into Vietnamese language in accordance with Clause 1 Article 16 of the Law on Accounting 2015. The accounting unit is responsible for the accuracy of such Vietnamese translations. The Vietnamese translations of accounting records must be attached to the original versions.

- Vietnamese translations of documents in foreign languages attached to accounting records such as contracts, project dossiers, statements, etc. are not mandatory unless required by a competent authority.  

In addition, Article 85 of Circular 80/2021/TT-BTC clearly states that The language used in tax documents shall be Vietnamese. Documents written in foreign languages must be translated into Vietnamese.

Taxpayers shall append their signatures and seals on the Vietnam translations and take legal responsibility for the translations. In case a document in foreign language is longer than 20 A4 pages, the taxpayer shall submit a written explanation and request for permission to translate the part that is relevant to determination of tax obligations.

Thus, according to the above regulations, foreign language invoices and accounting records must be translated into Vietnamese.

2. What are the penalties for failure to translate accounting records in foreign language to Vietnamese?

According to Clause 2, Article 8, Decree 41/2018/ND-CP, a fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for one of the following violations:

- The accounting record having insufficient copies as specified in the regulations;

- Signing accounting records which have insufficient contents;

- Signing accounting records ultra vires;

- Inconsistent signatures or signatures not matching those in the signature registry;

- Accounting records having insufficient signatures as specified in those records;

- Failure to translate accounting records in foreign language to Vietnamese;

- Loss or damage of accounting documents and records while in use.

Thus, for the act of failure to translate accounting records in foreign language to Vietnamese according to regulations, individuals will be fined from 5,000,000 VND to 10,000,000 VND.

Violating organizations will be fined from 10,000,000 VND to 20,000,000 VND.

(Clause 2, Article 6, Decree 41/2018/ND-CP (amended in Decree 102/2021/ND-CP))

Nguyen Ngoc Que Anh

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