Payment Terms Legislation In Latvia

Article 1668 of the Civil Law – Delay in Contracts for Supply, Purchase of Goods or Provision of Services – enacts the EU Late Payment Directive (see European Union for details).

The Law on the Prohibition of Unfair Commercial Practices replaces the previous Unfair Retail Trade Practices Prohibition Law and enacts the EU UTP in the supply chain directive (see European Union for details). In addition the comparative tiers are replaced with simple definitions of agricultural producers, retailers of agricultural goods and buyers with turnover of more than €2m. Unless otherwise agreed, a maximum payment term for the supply of fresh vegetables and berries, delivered at least three times in one calendar week, is also set at 20 days after delivery.

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

Article 1765 of the Civil Law provides the legal interest rate for late payment on contracts for delivery of goods, being the European Central Bank refinancing rate, set semi-annually, plus 8%.