As of July 1, 2022, a new maximum payment period will apply to large companies.
Most companies apply a payment term of 14 or 30 days for invoices. Nevertheless, larger companies regularly paid late - 60 days was no exception. And that was allowed, legally. This can of course have a disruptive effect on the cash flow of SMEs.
For large companies, this is therefore going to change. As of July 1, 2022, the statutory maximum payment terms for large companies will be adjusted towards smaller companies. The situation from 1 July 2022 can be summarized as follows:
|Legal payment term in days||Individuals||Company||Government||Large enterprise|
|No payment term agreed||No law||30||30||30|
|Maximum payment term||No law||60||30||30 (60 before July 1, 2022)|
|Maximum payment term by legal exception||No law||60+||60||Not possible1|
|Minimum payment term2||14||14||14||14|
1 It is not permitted to invoke a legal exception for a longer payment period. A longer payment term is then void (invalid).
2 Individuals often pay in advance or directly at the time of purchase. If it is on account, then often 14 days. Legally there is no minimum for payment terms, but it is stated that it must be reasonable. 14 days is therefore seen as a minimum in all situations.
Do you have a large company, or do you do business with large companies? If so, delve into this new legislation so that you are ready for it as of July 1, 2022.