Deadline for collection and payment of invoices
Posted: Mon Jan 06, 2025 8:22 am
It is very likely that as a business owner or self-employed person you have suffered non-payments from your clients and that this has caused you problems when paying your suppliers. In many cases, collecting and paying invoices can be a real headache. And when the problem drags on, it leads to the limit of having to close a business due to non-payments.
For this reason, various legislative measures have been adopted to reduce the deadline for the collection and payment of invoices . We are referring to the laws of 2004, 2010 and 2013 that try to combat late payment. To do this, they have established the maximum payment period for suppliers and have prohibited this period from being negotiable except to reduce it.
In this article we are going to analyse the current deadlines for the collection and payment of invoices, as well as the rights you have as a self-employed person when it comes to claiming interest for late payment.
We invite you to discover Holded and everything it can do for your business.
Deadline for collection and payment of invoices
Legislative regulation
Law 3/2004 , of December 29, establishing measures to combat late payment in commercial transactions.
Law 15/2010 , of July 5, which japan number data modifies the previous Law.
Royal Decree-Law 4/2013 , of February 22, on measures to support entrepreneurs and stimulate growth and job creation.
Maximum time for payment of invoices
It should be noted that the three previous rules determine the payment terms whenever the client is a company, another self-employed person or the public administration. We detail them below.
The maximum payment period is 30 calendar days (including holidays and vacation periods). This period will start from the moment the customer receives the products or from the moment the contracted services are provided. Never before, even if you send the invoice in advance.
Related article: Deadline for sending invoices, new features for 2017
Companies can sign a contract extending this period , but it cannot exceed 60 calendar days . If this situation occurs, receipt of the invoice by electronic means will produce the effects of the start of the calculation of the payment period.
The law also requires the supplier to send the invoice or “equivalent payment request” to its client within 30 days of receipt of the merchandise or provision of the service.
What happens if the customer doesn't pay?
If the client does not pay the invoice, you are entitled to compensation and interest, which starts from the first day of delay.
In the contract you can agree on the late payment interest that your client will have to pay if he does not pay you within the established deadlines. If this is not set, the law determines that the interest rate used by the European Central Bank in “its most recent main financing operation carried out before the first day of the calendar semester in question plus eight percentage points” will be applied.
If you have agreed to pay in instalments in the contract and the client does not comply with some of them, the late payment interest “will be calculated solely on the basis of the amounts due”. Therefore, the amounts paid will not be considered.
In addition, the creditor will have the right to charge a fixed amount of 40 euros that will be added to the principal debt, without the need for an express request.
For this reason, various legislative measures have been adopted to reduce the deadline for the collection and payment of invoices . We are referring to the laws of 2004, 2010 and 2013 that try to combat late payment. To do this, they have established the maximum payment period for suppliers and have prohibited this period from being negotiable except to reduce it.
In this article we are going to analyse the current deadlines for the collection and payment of invoices, as well as the rights you have as a self-employed person when it comes to claiming interest for late payment.
We invite you to discover Holded and everything it can do for your business.
Deadline for collection and payment of invoices
Legislative regulation
Law 3/2004 , of December 29, establishing measures to combat late payment in commercial transactions.
Law 15/2010 , of July 5, which japan number data modifies the previous Law.
Royal Decree-Law 4/2013 , of February 22, on measures to support entrepreneurs and stimulate growth and job creation.
Maximum time for payment of invoices
It should be noted that the three previous rules determine the payment terms whenever the client is a company, another self-employed person or the public administration. We detail them below.
The maximum payment period is 30 calendar days (including holidays and vacation periods). This period will start from the moment the customer receives the products or from the moment the contracted services are provided. Never before, even if you send the invoice in advance.
Related article: Deadline for sending invoices, new features for 2017
Companies can sign a contract extending this period , but it cannot exceed 60 calendar days . If this situation occurs, receipt of the invoice by electronic means will produce the effects of the start of the calculation of the payment period.
The law also requires the supplier to send the invoice or “equivalent payment request” to its client within 30 days of receipt of the merchandise or provision of the service.
What happens if the customer doesn't pay?
If the client does not pay the invoice, you are entitled to compensation and interest, which starts from the first day of delay.
In the contract you can agree on the late payment interest that your client will have to pay if he does not pay you within the established deadlines. If this is not set, the law determines that the interest rate used by the European Central Bank in “its most recent main financing operation carried out before the first day of the calendar semester in question plus eight percentage points” will be applied.
If you have agreed to pay in instalments in the contract and the client does not comply with some of them, the late payment interest “will be calculated solely on the basis of the amounts due”. Therefore, the amounts paid will not be considered.
In addition, the creditor will have the right to charge a fixed amount of 40 euros that will be added to the principal debt, without the need for an express request.