Payment Terms Legislation In Austria
Please click here to view payment terms for the European Union.
Through the Payment Default Act, sections 904, 907a and 1334 of the General Civil Code in Austria enact the EU Late Payment Directive (see European Union for details).
The law states that ‘grossly disadvantageous’ terms are prohibited and ‘a payment period of up to 60 days is by no means grossly disadvantageous’. Additionally where no term is specified in the contract the payment has to be made ‘without any undue delay’.
Federal law 1167 to improve local supply and the conditions of competition, amendment enacts the directive on unfair trading practices in business-to-business relationships in the agricultural and food supply chain (See European Union for details).
Default late payment penalty interest for commercial transactions is the base rate published by the Austrian National Bank plus 9.2%. The base rate applicable is the rate at the beginning of the calendar half-year.
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