Payment Terms Legislation In Germany
Please click here to view payment terms for the European Union.
The Law to combat late payment in business transactions and to amend the Renewable Energy Sources Act enacts the EU Late Payment Directive (see European Union for details).
In addition German law has stricter maximum terms. Although article 271 of the Commercial Code sets a maximum commercial term of 60 days, unless otherwise agreed by both parties and not grossly unfair, article 308 prohibits terms of longer than 30 days in standard terms and conditions. Additionally Article 271 of the German Civil Code states that if no term is agreed the payment is immediately due on receipt of the invoice.
See European Union for the Directive on Unfair Trading Practices in the Food Supply Chain which was adopted on 30 April 2019.
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