Should the amount be stated in words on the invoice?

The company issues an invoice/bill of lading for the product purchased by the customer. Is it mandatory to indicate the payment amount in words on the invoice/waybill?

A justification document is a document that certifies the existence of an economic transaction of the company and which contains the document details and information about the economic transaction specified in the Accounting Law (GL).
In order for the document and the transaction to be recognized as having taken place, three requirements of regulatory acts must be met for the preparation of documents:

• GL Article 11, Part 5;
• Cabinet of Ministers (MK) Regulations No. 877 "Regulations for Bookkeeping" Chapter 5, Subchapter 5.1 describe the requirements for the justification document, which is prepared for goods and other material values and services. However, the requirements of goods delivery documents are explained in Chapter 6;
• Article 126 of the Value Added Tax Law (VAT Law).

Below is detailed information about the requirements in the law for the preparation of the document - what details should be included, what information about the business transaction should be included.

Properties under GL

Referring to Article 11, Clause 5 of the GL, the justification document contains at least the following document details and information about the economic transaction:

• the justification document contains at least the following document details and information about the economic transaction:
  • name of the document type;
  • document date;
  • document number;
  • information about the company, which is a participant in the economic transaction, which issues the document on its own behalf (author of the document);
  • the name of the author of the document (for a commercial company, an individual merchant – a company), registration number or taxpayer registration code;
• if the author of the document is a natural person who carries out economic activity, but is not an individual merchant, – first and last name, taxpayer registration code;
• information that allows for the unequivocal identification of other participants in the economic transaction, if any (specifies the same information as specified in point 4 of this part regarding the author of the document);
• if another participant of the economic transaction is a natural person who does not perform economic activity, - name and surname. The personal code (if the person has been assigned one) is indicated at the request of this person or if it follows from other regulatory enactments;
• signature of the responsible person.

Additional details are specified for certain documents, which are stipulated in the VAT Law and the rules on bookkeeping.

Details specified in the rules of the MK

When writing out bills of lading and invoices, in addition to the GL, regulations of the Ministry of Interior No. 877 must be followed, which describe the requirements for the justification document prepared for goods and other material values and services. Let's look at the additional details in the justification documents.

The description and justification of the economic transaction shall state:

• the name of the product or service;
• description of the relevant economic transaction or activity (for example, delivery (sale) of goods to another company, transfer between the company's permanent places of operation (company's structural units) or the provision of services to persons responsible for the preservation of specific goods).

The meters of the economic transaction indicate:

• unit of measure and quantity; price of one unit;
• evaluation of the economic transaction in monetary terms;
• discounts granted, if any;
• taxes calculated in monetary terms from the evaluation of the economic transaction (value added tax, excise tax, natural resources tax), if any;
• valuation of the economic transaction in monetary terms together with taxes.

Goods delivery documents (documents certifying the fact of delivery and receipt of goods) must also refer to another document (if any) containing information necessary for evaluating the economic transaction in monetary terms, for example, a relevant contract.