(12 March 2013) – The European Union adopted Directive 2011/7/EU on combating late payment in commercial transactions. It obliges public authorities to pay for goods and services within 30 or 60 calendar days.
Every day across Europe, dozens of small and medium sized enterprises (SMEs) go bankrupt as their invoices are not paid. As a result jobs are lost and business opportunities remain unexploited, stalling a return to economic growth.
By 16th March 2013 Member States will need to have integrated the revised Late Payments Directive into their national law. It obliges public authorities to pay for goods and services within 30 calendar days or, in very exceptional circumstances, within 60 days.
Businesses should pay their invoices within 60 calendar days, unless they expressly agree otherwise and if it is not grossly unfair to the creditor.