Payment Terms Legislation In Bulgaria

The Commerce Act enacts the EU Late Payment Directive (see European Union for details). Additionally Article 303a, Sec. 3 Commerce Act, Bill for Amendment and Supplementation of the Commerce Act limits default terms in the absence of an agreement to 14 days from the date of receipt of the invoice, or from the date of delivery of the goods or services.

The Bulgarian Food Act sets a maximum payment term of 30 days for the purchase of foods intended for resale. The act also established a Consultative Council on the Better Functioning of the Food Supply Chain.

Amendments to the Competition Protection Act in 2021 enact the EU UTP in the supply chain directive (see European Union for details). Specifically Chapter Seven “b“. This replaces the previous terms regulation in The Food Act of 1999 which was repealed. In addition a single maximum payment term for all agricultural goods is set at 30 days, while buyer and supplier tiers are set in Bulgarian Lev.

The Ethical Code by the Bulgarian Chamber of Commerce promotes the broad principles of fair market relationships and competition.

See European Union for the Directive on Unfair Trading Practices in the Food Supply Chain which was adopted on 30 April 2019.

The default and maximum interest on late payments is the main interest rate of the Bulgarian National Bank, set on 1 January and 1 July, plus 10%.