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 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%.