Introduction
Under Dutch law, late payment in commercial relationships may give rise to statutory (commercial) interest and extrajudicial collection costs. Since interest rates are periodically adjusted by government decree, it is important for contracting parties to understand not only the applicable rates, but also the underlying legal framework. This article provides an overview of the rules as they apply in the Netherlands, updated to the situation in 2026.
Statutory payment terms
a. Companies (business-to-business)
Payment terms in business-to-business relationships are governed by the European Directive on combating late payment in commercial transactions, as implemented in Dutch law.
As a general rule, the maximum payment term between companies is 60 days, unless a different term has been agreed. A payment period exceeding 60 days is only permitted if it can be demonstrated that such a term is not grossly unfair to the creditor.
If no payment term has been agreed, a statutory default payment term of 30 days applies.
These rules apply unless stricter provisions are applicable, for example in the case of large companies paying SMEs.
b. Consumers
There is no statutory payment term for consumers or private individuals. Businesses are free to determine the payment term applicable to consumers, provided that the term is reasonable and does not conflict with consumer protection legislation or unfair terms rules.
c. Large companies paying SMEs and self-employed persons
Large companies are required to pay invoices from small and medium-sized enterprises (SMEs) and self-employed persons within 30 days. Any agreement providing for a longer payment term is null and void, and the statutory 30-day period applies by operation of law.
An SME is defined as an undertaking with fewer than 250 employees and either an annual turnover not exceeding EUR 40 million or an annual balance sheet total not exceeding EUR 20 million. This regime has been fully applicable since 1 July 2022 and remains unchanged as of 2026.
d. Government bodies
Public authorities are required to pay invoices within 30 days of receipt. Extension to a maximum of 60 days is only permitted in exceptional cases and must be objectively justified.
Consequences of late payment
If a contracting party fails to pay an invoice on time and the creditor has fulfilled its contractual obligations, the creditor is entitled by law to:
- statutory (commercial) interest for the period following the expiry of the payment term, and
- extrajudicial collection costs.
No prior notice of default is required in commercial relationships once the payment term has expired, although it is common practice to send a reminder or demand letter.
Extrajudicial collection costs
Extrajudicial collection costs are the costs incurred in seeking payment outside court proceedings, such as correspondence, reminders and collection activities.
Dutch law provides a statutory scale for extrajudicial collection costs, calculated as a percentage of the principal claim. The percentage decreases as the amount of the claim increases. A statutory minimum of EUR 40 applies, and the statutory maximum is capped (currently at EUR 6,775 for claims exceeding EUR 200,000).
Where the debtor is a business, parties may deviate from the statutory scheme by contract. If no contractual arrangement has been made, the statutory regeling applies by default.
In consumer relationships, the statutory regime is mandatory and subject to additional requirements, such as the obligation to send a formal 14-day reminder before collection costs may be charged.
Statutory (commercial) interest
Statutory (commercial) interest accrues automatically once the debtor is in default, meaning once the agreed or statutory payment term has expired.
Two types of interest are relevant:
- statutory interest for non-commercial transactions, applicable primarily in consumer relationships; and
- statutory commercial interest, applicable to commercial transactions between businesses and to transactions involving public authorities.
The statutory commercial interest rate is significantly higher than the regular statutory interest rate and is intended to discourage late payment in professional transactions. Both types of interest are subject to compound interest, meaning that interest accrues on unpaid interest, which can result in substantial additional costs over time.
Interest rates are adjusted periodically, typically on 1 January and 1 July. Since 2023, rates have been relatively high by historical standards, reflecting broader economic developments. Parties are therefore advised to check the applicable rate at the time the claim arises.
To avoid discussion, it is recommended to clearly state in invoices and payment reminders that statutory (commercial) interest will be charged in the event of late payment.
Developments and practical considerations
Since 2023, increased attention has been paid to timely payment, partly due to rising interest rates and partly due to stricter statutory regimes for large companies and public authorities. In practice, creditors are more inclined to actually claim statutory interest and collection costs than in the past, especially in longer-running commercial relationships.
At the same time, courts continue to apply the statutory framework strictly. Contractual clauses that attempt to exclude statutory interest or collection costs in situations where the law does not allow such exclusion are generally unenforceable.
From a risk management perspective, businesses are advised to:
- review payment terms in standard contracts and general terms and conditions;
- ensure that invoicing and reminder processes are aligned with statutory requirements; and
- regularly verify applicable interest rates at the time of default.
Conclusion
Statutory (commercial) interest and extrajudicial collection costs form an integral part of the Dutch legal framework for combating late payment. The rules themselves are stable, but their financial impact has increased due to higher interest rates and stricter enforcement in practice. For both creditors and debtors, a clear understanding of these mechanisms remains essential in managing commercial risk and cash flow.
Article published by Leeway (The Netherlands)
