Payment Terms Legislation In Hungary

The Hungarian Civil Code enacts the EU Late Payment Directive, specifically Section 6:130 (see European Union for details). In addition this code strictly limits commercial terms at 60 days.

Among other laws, Law XCV of 2009 on the prohibition of unfair distribution practices by suppliers largely enacts the fair payment terms elements of the EU UTP in the supply chain directive, although some minor amendments are required to fully harmonise the law (see European Union for details). In relation to agricultural and food products a maximum payment term of 30 days from the actual delivery of the food or 15 days from receipt of the invoice is required. This is not limited to companies of prescribed sizes.

The Code of Ethics for Construction Entrepreneurs applies to construction entrepreneurs registered with the Hungarian Chamber of Commerce and Industry (MKIK) and prohibits the misuse of a dominant position by a primary contractor as well as unfair or unilateral payment terms.

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

Section 6:155 applies a default minimum penalty interest rate of the central bank base rate, set semi-annually, plus 8%.