New EU Directive On Combating Late Payment In Commercial Transactions

A new EU Directive 2011/7/EU came into effect on 16 March 2011 which will make significant changes to the rules on late payment in commercial transactions.  The purpose of the Directive is to "combat late payment in the internal market" by imposing deadlines for payment of bills for goods and services. 

For business to business contracts, unless otherwise agreed the bill must be paid within 60 days from the date of receipt.  If the date of receipt of the bill is unclear, the period will run from the date of receipt of the goods or services.  For contracts involving public authorities, the deadline is even shorter: payment must be made within 30 days.  The supplier will be entitled to charge interest from 30 days of receipt of the bill, without the need to issue a reminder.