Payment Terms Legislation In Austria

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Austria

Please scroll down for a summary of payment terms in Austria and the various industries across which payment term legislation appears.

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Industries Laws Codes Notes Interest Rate
Government
Comm_terms_law
Construction
Manufacturing
Retail_agriculture
Services

Laws

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’.

Government Comm_terms_law Construction Manufacturing Retail_agriculture Services
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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).

Comm_terms_law Retail_agriculture
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Interest Rate

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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