European Union Flag

European Union

Please see below for a summary of payment terms in the European Union and the various industries across which payment term legislation appears. You can also download a summary of all European Union payment terms by clicking the button below.
Industries Laws Codes Notes
Government
Comm_terms_law
Construction
Manufacturing
Retail_agriculture
Services

LAWS

The EU Late Payment Directive of 16 Feb 2011 required member states to implement laws by 16 Mar 2013. Maximum payment terms from public entities are 30 days. For specific situations longer terms can be agreed in contract, but this cannot exceed 60 days particularly for the healthcare sector. Commercial terms cannot be longer than 60 days unless expressly agreed by both parties and not grossly unfair. Where no terms are specified the default is 30 days. The term begins from receipt of invoice and verification of invoice cannot exceed 30 days. If the invoice is not received or received earlier than receipt of goods then the term starts from receipt of goods. Individual states can enact provisions that are more favourable to the supplier (See EU member states for local details).

  • Government
  • Comm_terms_law
  • Construction
  • Manufacturing
  • Retail_agriculture
  • Services
Go to link

On 30 April 2019 the EU adopted legislation on unfair trading practices in business-to-business relationships in the food supply chain. Member states were required to transpose the directive into national law by 1 May 2021. Among other requirements, payment terms are capped at 30 days for perishable goods and 60 days for other agricultural and food products, from the later of delivery date or payment due date. Healthcare, school food schemes and long-term grape contracts are excluded and five tiers of relative company sizes are set out to which these terms apply. Existing contracts have one year to comply. A stricter enforcement mechanism is also required in each member state with a designated enforcement authority. By the end of 2021, 20 member states had enacted the directive into national law (See EU member states for local details).

  • Comm_terms_law
  • Retail_agriculture
Go to link

CODES

The Supply Chain Initiative (SCI) is a joint initiative launched by several EU level associations with the aim of increasing fairness in commercial relations along the food supply chain.

Ready to liberate your cash?

Discover the source of value in your supply chain

Contact our sales team