Payment Terms Legislation In Denmark

Law 459, The Interest Act 13 May 2014, enacts the EU Late Payment Directive (see European Union for details). Additionally Danish law sets a stricter maximum payment term of 30 days unless expressly agreed by both parties and not ‘unreasonable’ or ‘unfair’. Law 193, The Contracts Act, further limits ‘unreasonable’ or ‘unfair’ practices.

LAW No. 719 of 27/04/2021 – Act on Unfair Commercial Practices in Relations between Enterprises in the Agricultural and Food Supply Chain – enacts the EU UTP in the supply chain directive (see European Union for details). In addition, instead of five company size tiers the law applies to any buyer with turnover of more than DKK 2 million and any supplier with turnover of up to DKK 350 million.

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

Article 5, of Law 459 – The Interest Act 13 May 2014 – applies a minimum penalty interest at the Danish National Bank official lending rate (set on 1 January and 1 July each year) plus 8%.