Payment Terms Legislation In Serbia

The Law on Deadlines for Settlement of Monetary Obligations in Commercial Transactions sets a maximum supplier terms for public entities at 45 days and private entities at 60 days. There are exceptions and longer terms of up to 90 days may be agreed by both parties if covered by a bank guarantee or bill of exchange.

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.

The default late payment penalty interest for commercial transactions is the reference rate of the National Bank of Serbia plus 8%. For transactions in EUR the rate is the European Central Bank refinancing rate plus 8%.