Payment Terms Legislation In Czech Republic
Czech Republic
Please click here to view payment terms for the European Union.
Industries | Laws | Codes | Notes | Interest Rate |
---|---|---|---|---|
Government | ||||
Comm_terms_law | ||||
Construction | ||||
Manufacturing | ||||
Retail_agriculture | ||||
Services |
LAWS
Act no.179/2013 amending Act no. 513/1991 updated the Czechia Commercial Code to enact the commercial elements of the EU Late Payment Directive (see European Union for details). Additionally law no. 235/2004 on Value Added Tax, section 109, allows for the transfer of obligations to pay VAT from the creditor to the debtor in the case of late payment.
- Government
- Comm_terms_law
- Construction
- Manufacturing
- Retail_agriculture
- Services
Act no. 395/2009 Coll. on Significant Market Power in Selling of Agricultural and Food Products and its Abuse, as well as amendments by Act No. 50/2016 set a maximum term of 30 days from invoice delivery for food and agricultural products. Breaches of this law can result in fines up to CZK 10 million, or 10% of net income. This applies to buyers or alliances where the turnover, controlling entity or combined alliance turnover is more than CZK 5 billion. The law is generally stricter than the UTP and protects against any abuse of significant power in the agricultural industry. (see European Union for details).
- Comm_terms_law
- Retail_agriculture
NOTES
See European Union for the Directive on Unfair Trading Practices in the Food Supply Chain which was adopted on 30 April 2019.
- Retail_agriculture
INTEREST RATE
The minimum late payment interest rate is the repo rate published by the Czech National Bank and set every six months, plus 8%.
Ready to liberate your cash?
Discover the source of value in your supply chain
Contact our sales team