Brussels, 12/03/2013 (Agence Europe) - On 17 March next, the revised directive on tackling late payments for commercial transactions will come into force. This will compel the public authorities in all member states to pay their invoices for goods and services within 30 days (60 days in exceptional circumstances). Companies will have to pay invoices within a 60-day time frame unless different provisions are explicitly contained in their contracts and this deadline does not constitute flagrantly abusive treatment of the creditor. These measures will be compulsory for public authorities but optional for companies insofar as they have the right to take action but will not be obliged to take it. They are particularly intended to protect SMEs against a practice - late payment of bills - which compels them to undertake expensive proceedings and which can create serious difficulties for them, to the extent of even having to close down.
According to the new rules, in the event of debtors not respecting the set deadlines indicated above for payment of future invoices (the new rules do not apply to currently outstanding payments), the companies can: - claim interest on the delays for which the rates will be at least eight percentage points higher than the European Central Bank's reference rates; - obtain €40 in compensation for recovery costs; - more easily challenge the conditions and practices constituting a clear breach of the rules in national courts. Member states will also be obliged to publish their late payment interest rates and encouraged to establish codes of good practice on swift payment. The directive has so far been ratified by nine member states (Cyprus, Malta, Italy, Slovakia, Sweden, Netherlands, Ireland, Spain and Bulgaria) but will be applied in all EU countries as from Saturday 17 March. (FG/transl.fl)