Maximum payment deadlines between companies and for the public sector

Automatic summary, not yet reviewed

1. Companies must pay their suppliers within a maximum of 60 days from receiving goods or services. The parties cannot agree on a longer period.
2. Suppliers must send the invoice within a maximum of 30 days from delivering the goods or providing the service. Electronic invoices also start the payment period if their authenticity is guaranteed.
3. If the debtor is late, the creditor can claim compensation for collection costs, capped at 15% of the debt. If the debt is under €30,000, the cap is the amount of the debt itself.
4. Public administrations must pay their invoices within a maximum of 30 days, with a transition schedule: 55 days until the end of 2010, 50 days in 2011 and 40 days in 2012. If they do not pay, the contractor can file a claim and ask the judge for immediate payment.
5. Controls are created to check whether administrations pay on time: quarterly reports by the State, the Autonomous Communities and local entities, plus an invoice registry in local governments.
6. Companies that had agreed on longer payment periods must adjust them gradually: 85 days until the end of 2011, 75 days in 2012 and 60 days from January 1, 2013. For fresh and perishable food, the 30-day period applies immediately.

Who it affects

• Companies that buy goods or services from other companies: They must pay their suppliers within a maximum of 60 days and cannot agree on longer periods.
• SMEs and suppliers: They have the right to be paid within 60 days and to receive compensation if payment is late.
• Public administrations: They must pay within 30 days and publish reports on meeting payment deadlines.
• Municipalities and local entities: They must keep an invoice registry and publish reports on invoices that take too long to process.
• Agrifood companies: They cannot defer payment for fresh and perishable food more than 30 days from delivery.

Words worth knowing

Mora

Delay in paying a debt once the deadline has passed.

Costes de cobro

Collection costs: the money the creditor spends trying to collect the debt, such as fees or advisory services.

Cláusula abusiva

Abusive clause: a contract term that unfairly harms one party and that a judge can declare void.

Recurso contencioso-administrativo

A lawsuit before a court to challenge decisions or inaction by a public administration.

Medida cautelar

Interim relief: a provisional court order protecting a party while the case is decided, such as ordering immediate payment.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries