Late payments

The issue of 'late payment in commercial transactions' is governed by the European Communities (Late Payment in Commercial Transactions) Regulations 2012.

The European Communities (Late Payment in Commercial Transactions) Regulations 2012 provide that 'interest' shall be payable in respect of a late payment. Late payment interest can be calculated using this interest calculator.

The European Communities (Late Payment in Commercial Transactions) Regulations 2012 provide that where late payment interest falls due in respect of a payment, in addition to this amount, the supplier is also automatically entitled to 'compensation for recovery costs', without the necessity of a reminder.

It is a Government requirement that all central government departments, the Health Service Executive, the local authorities and all other public sector bodies (excluding commercial Semi-State bodies) pay their suppliers within 15 calendar days of receipt of a valid invoice.