Payment Terms Legislation In Germany

The Law to combat late payment in business transactions and to amend the Renewable Energy Sources Act enacts the EU Late Payment Directive (see European Union for details).
In addition German law has stricter maximum terms. Although article 271 of the Commercial Code sets a maximum commercial term of 60 days, unless otherwise agreed by both parties and not grossly unfair, article 308 prohibits terms of longer than 30 days in standard terms and conditions. Additionally Article 271 of the German Civil Code states that if no term is agreed the payment is immediately due on receipt of the invoice.

The Law to Strengthen Organizations and Supply Chains in the Agricultural Sector amended the Agricultural Structure Law, enacting the EU UTP in the supply chain directive. Maximum terms for agricultural, fishery and food products came into force on 9 June 2021 (see European Union for details).

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

Standard statutory interest for commercial transactions is 5% (Section 352 Commercial Code). Specifically, if a borrower defaults on the payment of a debt the rate is basic interest rate, set by the Bundesbank semi-annually, plus 5% (Section 288(1) Civil Code).