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What it is

Bill to fine companies that pay suppliers late

Amendments step 3 of 7 · Unfinished

It is a members’ bill. Introduced by parliamentary groups, the Senate, regional governments or citizens. It was introduced on 6 May 2020. Introduced by: Grupo Parlamentario Plural.

Official title: Private member's bill amending Law 3/2004, of 29 December, establishing measures to combat late payment in commercial transactions, in order to regulate a regime of infringements and sanctions.

Follow this law

Source: Congreso de los Diputados, file 122/000054· updated 11 Nov

Automatic summary, not yet reviewed

  1. The bill would add to Law 3/2004 a system of offenses and fines for paying after the legal deadlines. Offenses would be classified as minor, serious, or very serious, with fines from €3,000 up to €1 million in the worst cases.
  2. Serious offenses would include missing the legal deadline on deals over €50,000 or falsifying invoices. They would become very serious when the deal exceeds €600,000 or there is a repeat offense.
  3. Trading companies and public administrations would have to publish their average payment period to suppliers, and a State Observatory on Late Payments would be created to track the problem each year.
  4. Anyone could report late payments anonymously through an online channel, and the fines imposed would be public.
  5. If the fined company pays the debt within ten days, it could request a 25% reduction of the fine. For repeated very serious offenses, it could be barred from public contracts and subsidies.
  6. The bill would also amend the retail trade law to align its payment deadlines, the unfair competition law to treat repeated late payment as unfair, and the VAT law so companies do not have to pay VAT upfront on unpaid invoices.

Who it affects

  • Companies and self-employed workers selling to other companies or to the government: They could report late payments and receive the owed amounts along with the fine on the debtor.
  • Large companies and administrations that pay late: They would face fines of up to €1 million and, for repeat offenses, exclusion from public contracts and subsidies.
  • Retail traders: Their payment deadlines to suppliers would be aligned with the late payment law.
  • Companies with unpaid invoices: They could reduce the VAT base of those invoices through a faster procedure.

Words worth knowing

Morosidad (late payment)
Not paying a debt within the agreed or legal deadline, when the creditor has met its obligations.
Acreedor y deudor (creditor and debtor)
The creditor is the one who must be paid; the debtor is the one who must pay.
Base imponible (tax base)
The amount on which a tax is calculated, here the VAT on an invoice.
Prescripción (statute of limitations)
The time after which an offense can no longer be fined or a fine can no longer be collected.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 3 of 7 steps. It reached Amendments, and today it is unfinished.

  1. Introduced6 May 2020Someone registers the text in the Congreso.
  2. Admitted12 May 2020The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendments2 October 2020Groups propose changes.
  4. Committeenot reachedA committee goes through the text in detail.
  5. Plenarynot reachedAll 350 deputies vote.
  6. Senatenot reachedThe Senate can pass it, amend it or veto it.
  7. BOEnot reachedIt is published in the Official State Gazette (BOE) and comes into force.
See the 9 official steps on a timeline
Dec 2020Dec 2021Dec 202211. 6 May 2020: Presentación22. 12 May 2020: Boletín Oficial de las Cortes Generales Publicación desde 12/05/2020 hasta 18/05/202033. 12 May 2020: Calificación44. 18 May 2020: Gobierno Contestación desde 18/05/2020 hasta 23/06/202055. 23 June 2020: Pleno Toma en consideración desde 23/06/2020 hasta 22/09/202066. 22 September 2020: Mesa del Congreso Acuerdo subsiguiente a la toma en consideración desde 22/09/2020 hasta 29/09/202077. 29 September 2020: Comisión de Industria, Comercio y Turismo Publicación desde 29/09/2020 hasta 02/10/202088. 2 October 2020: Comisión de Industria, Comercio y Turismo Enmiendas desde 02/10/2020 hasta 30/05/202399. 30 May 2023: Concluido - (Caducado) desde 30/05/2023 hasta 16/06/2023

22 September 2020

How did the plenary vote?

More votes in favour 344 yes · 0 no · 1 abst.

Voted on: Private member's bill by the Plural Parliamentary Group, amending Law 3/2004, of December 29, establishing measures to combat late payment in commercial transactions, with the aim of regulating a regime of infringements and sanctions.

Source: Congreso de los Diputados, vote 1 of sitting 43· updated 11 Nov

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Your province

How did the deputies from your province vote?

And your senators: the Senate does not link its votes to this law in its open data, so we cannot put them side by side here.

Or see how most of each province voted
More details: how each group and each province voted

The groups

Who voted in favour and who against?

In favour, most of Euskal Herria Bildu, Republicano, Socialista, Vasco (EAJ-PNV), Mixto, Ciudadanos, Gcup-ec-gc, GPlu, Popular en el Congreso and VOX. 1 deputy voted differently from their group.

By province: in 52 most voted in favour; in 0, against.

Coloured by how most of each province’s deputies voted.

  • In favour: 52
  • Against: 0
Result by parliamentary group
GroupSeatsHow it voted
Euskal Herria Bildu5
5 in favour
Republicano13
13 in favour
Socialista120
120 in favour
Vasco (EAJ-PNV)6
6 in favour
Mixto9
7 in favour · 1 abst. · 1 did not vote
Ciudadanos10
10 in favour
Gcup-ec-gc35
34 in favour · 1 did not vote
GPlu12
12 in favour
Popular en el Congreso88
87 in favour · 1 did not vote
VOX52
50 in favour · 2 did not vote

What happens next

What happens now?

The legislature ended before it finished. To go on, someone would have to introduce it again in the new Cortes.

It has not been presented again yet.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

Read the full method · Report an error