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From 1 January 2024, the Dutch statutory interest and statutory commercial interest rates may be adjusted again. What are the consequences under Dutch law, should your contracting party fail to pay, or pay late? From 1 January 2024, the Dutch statutory interest and statutory commercial interest rates may be adjusted again. What are the consequences under Dutch law, should your contracting party fail to pay, or pay late?

1. Statutory payment terms

a. For companies

Payment terms in business-to-business contracts are governed by the rules of the European Directive on combating late payment in commercial transactions:

• The maximum payment term for companies is 60 days, except for payments from large companies to SMEs (see c. below) and if something else has been agreed in a contract. A payment period longer than 60 days is allowed only if you can show that there are no disadvantages to the buyer and seller.
• Have you not agreed on a payment term? Then the payment period is 30 days by default.

b. For consumers

There is no legal payment term for consumers / private individuals. As a business owner, you may determine the payment term for consumers yourself. However, it must be a reasonable period.

c. For large companies

Large companies must pay small and medium-sized enterprises (SMEs) and the self-employed within 30 days. An SME is said to have fewer than 250 employees, an annual turnover not exceeding €40 million or an annual balance sheet total less than or equal to €20 million.

d. For the government

Governments must pay invoices within 30 days of receipt. They may extend that to 60 days only in rare situations.

2. Your contracting party does not pay or pays late

If your contracting party fails to pay your invoice or pays it late and you did deliver, you are entitled to:

• a standard minimum collection fee of €40 and, depending on the amount of the claim, an additional fee for collection costs, and
• the statutory (commercial) interest for the period that your contracting party does not pay after the payment period has expired.

3. Extrajudicial collection costs

Extrajudicial collection costs are the costs you incur to get your money if a contracting party does not pay your invoice on its own. The amount of extrajudicial collection costs is determined by a percentage of the total amount. The higher that amount is, the lower the percentage.

There is a minimum amount of €40 (standard fee) and a maximum amount of €6,775 if the claim exceeds €200,000. Is your contracting party a company? Then you can deviate from this in an agreement. If you don’t have an agreement, you fall back on the legal regulation.

4. Statutory (commercial) interest

Statutory (commercial) interest is the interest you can claim by law if your contracting party is in arrears. You must let your contracting party know that you charge statutory (commercial) interest as soon as the payment date expires. For example, on your invoice or in your payment reminder.

For deliveries to businesses and public authorities, the statutory interest rate for commercial transactions applies. For deliveries to consumers, the legal interest rate for non-commercial transactions applies. Both cases involve interest on interest, so interest costs can add up quickly, especially for higher claims.

Currently, as of 1 July 2023, the statutory interest rate is 6% and the statutory commercial interest rate is 12%. New rates are likely to be set by 1 January 2024.