Commercial transactions: combating late payment
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With the Council of the EU, which is preparing its first-reading position.
Last active 07 Oct 2025
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What this bill does
In plain terms: what it changes and who it affects.
This proposal sets EU-wide rules to make businesses and public authorities pay commercial invoices faster and penalise late payment.
Who it affects
It affects businesses supplying goods or services, especially SMEs, and public authorities buying from them. It also affects contractors and subcontractors on public works contracts.
Core of the proposal
- Caps commercial payment periods at 30 calendar days, including business-to-business and public authority payments.
- Limits acceptance or verification procedures to 30 calendar days where national law permits them.
- Makes late-payment interest automatic at the reference rate plus 8 percentage points.
- Requires EUR 50 recovery-cost compensation for each late-paid commercial transaction.
Key provisions
- Takes effect
- It enters into force the day after publication in the Official Journal and applies 12 months after entry into force.
- Transitional law
- Transactions after the application date are covered, even if the underlying contract was concluded before that date.
Articles changed · 1 across 1 law
- Directive 2011/7/EU (32011L0007)
- entire act: repeals the entire directive and replaces it with this Regulation
Latest update
07 Jun 2026The most recent development in this bill's progress.
Commission proposal → 1st reading – Council of the EU
Commission proposal → 1st reading – Council of the EU
Documents
1 recentSourcesOEILEUR-LexEU Law Tracker