Changes from report parliamentary committee draft to plenary report

AddedArticle 3 – paragraph 1 a (new): 1a. In commercial transactions between undertakings, where expressly agreed in the contract, the payment period referred to in paragraph 1, may be extended up to 60 calendar days.

AddedArticle 3 – paragraph 1 b (new): 1b. By way of derogation from paragraph 1, in transactions between undertakings for the purchase of slow moving or seasonal goods, the payment period may be extended up to 120 calendar days from the date of the receipt of the invoice or an equivalent request for payment by the debtor, provided that the debtor has received the goods. / Prior to the date of application of this Regulation, the Commission shall adopt and publish technical guidance documentation concerning the practical details for the application of this paragraph as regards the goods falling under the definition of slow moving goods laid down in Article 2(9b) and the definition of seasonal goods laid down in Article 2(9c). Such technical guidance documentation shall in particular address diverging payment practices put in place by different economic operators consisting in a risk of fragmentation of the internal market.

AddedArticle 3 – paragraph 2: 2. A procedure of acceptance or verification, by which the conformity of the goods or services with the contract is to be ascertained, may be provided for in national law where strictly necessary due to the specific nature of the goods or services. In that case, the contract shall describe the details of the procedure of acceptance or verification, including its duration.

AddedArticle 3 – paragraph 3: 3. Where the contract provides for a procedure of acceptance or verification, in accordance with paragraph 2, for the purposes of this Regulation, the maximum duration of that procedure shall not exceed 30 calendar days from the date of receipt of the goods or services by the debtor, even if such goods or services are supplied prior to the issuance of the invoice or an equivalent request for payment. In this case, the debtor shall initiate the procedure for acceptance or verification immediately upon reception from the creditor of the goods and/or the services that are the object of the commercial transaction. The payment period shall not exceed 30 calendar days after such procedure has been concluded or after receipt of the invoice, or an equivalent request for payment, if the latter takes place later.

AddedArticle 3 – paragraph 4: 4. The payment period set out in paragraph 1, 1a and 1b is the maximum payment period and is without prejudice to a shorter period which may be provided for in national law.

AddedArticle 3 – paragraph 4 a (new): 4a. Member States shall introduce appropriate measures to improve public authorities payment practices towards undertakings. In this regard, Member States shall consider introducing measures to ensure that an undertaking which is a creditor within the meaning of Article 2(9) is able to obtain upon request to the public authority, which has not paid the amount due within the maximum payment period set out in paragraph 1, the offsetting of the amount due against any outstanding amount that the creditor has towards the same public authority.

AddedArticle 5 – paragraph 1: 1. In case of late payment, the debtor shall pay interest for late payment to the creditor, except where the debtor is not responsible for the payment delay.

AddedArticle 5 – paragraph 3: 3. It shall not be possible for the creditor to waive its right to obtain interest for late payment when the debtor is a public authority or a large undertaking.

AddedArticle 5 – paragraph 6 – introductory part: 6. Where the conditions set out in paragraph 2 are satisfied, interest for late payment shall start accruing from the day following the expiry of contractual or statutory payment period and in accordance with Article 3. / (deleted) / (deleted)

AddedArticle 5 – paragraph 7: 7. The interest for late payment shall accrue until the creditor receives payment of the amount due.

Article 8 – paragraph 1: 1. Where interest for late payment becomes payable in accordance with Article 5, a flat fee compensation for recovery costs shall be automatically due by the debtor to the creditor and shall amount to a fixed sum of EUR 50, per every single commercial transaction of a value between 0 and EUR 1 500, EUR 100 per every single commercial transaction of a value between 1 501 and EUR 15 000, and EUR 150 per every single commercial transaction above 15 000 EUR.

Change 5

AddedArticle 8 – paragraph 2: 2. The flat fee compensation referred to in paragraph 1 shall be payable by the debtor to the creditor as a compensation for the creditor’s own recovery costs.

AddedArticle 8 – paragraph 3: 3. It shall not be possible for the creditor to waive its right to obtain the flat fee compensation laid down in paragraph 1, when the debtor is a public authority or a large undertaking.

Article 9 – title: Prohibition of certain contractual terms and practices

Article 9 – paragraph 1 – introductory part: 1. The following contractual terms and practices shall be null and void, and in any case shall be prohibited:

Change 6

ChangedArticle 9 – paragraph 1 – point b a (new): (ba) excluding or limiting the right of the creditor to: / (i) make assignments of the credit to third parties for the purpose of accessing financing services; / (ii) make use of an executive order of payments issued by a court;

Change 7

ChangedArticle 9 – paragraph 1 – point b a (new) – point i (new):d: (i)(d) makepreventing assignmentsor ofpostponing the credit to thirdmoment partiesof forsending the purpose ofinvoice accessingby financingthe services;debtor;

Change 8

ChangedArticle 9 – paragraph 1 – point bd a (new) – point ii (new): (ii)(da) makeprohibiting, useexcluding ofor anlimiting executivethe orderassignment of paymentsreceivables issuedto byrelevant afinancial court;institution;

Change 9

ChangedArticle 9 – paragraph 1 – point d: (d)d preventingb or(new): postponing(db) theusing momentmeans of sendingpayment thealtering invoice.payment terms.

Change 10

RemovedArticle 13 – paragraph 1: 1. Each Member State shall designate one or more authorities responsible for the enforcement of this Regulation (‘enforcement authority’) and communicate them to the Commission without undue delay.

AddedArticle 11 – title: Transparency and awareness raising

RemovedArticle 13 – paragraph 3: 3. Enforcement authorities shall be independent and shall cooperate effectively with each other and with the Commission and shall provide each other with mutual assistance in investigations that have a cross-border dimension.

AddedArticle 11 – paragraph 2 a (new): 2a. Member States shall, where appropriate, use professional publications, promotion campaigns or any other functional means to increase awareness of the remedies for late payment among undertakings.

AddedArticle 12 – paragraph 1: 1. Creditors shall obtain an enforceable title, including through an expedited procedure and irrespective of the amount of debt, within 60 calendar days of the lodging of the action or application at the court or other competent authority, provided that the debt and the procedure are not disputed.

AddedArticle 12 – paragraph 3: 3. This Article shall be without prejudice to the provisions of Regulation (EC) 1896/2006 and Regulation (EC) No 861/2007.

AddedArticle 13 – paragraph 1: 1. Each Member State shall designate one or more authorities responsible for the enforcement of this Regulation (‘enforcement authority’) and notify them to the Commission without undue delay. Member States shall provide the authorities with appropriate human, technical and financial resources to carry out its tasks and use its powers efficiently.

AddedArticle 13 – paragraph 1 a (new): 1a. Enforcement authorities shall be independent from other public authorities, including those involved in public procurement procedures.

AddedArticle 13 – paragraph 2: 2. Where appropriate, enforcement authorities shall take proportionate measures necessary to ensure that the deadlines for payments are complied with.

AddedArticle 13 – paragraph 3: 3. Enforcement authorities shall cooperate effectively with each other and with the Commission and shall provide each other with mutual assistance in investigations that have a cross-border dimension. The Commission shall facilitate the effective cooperation of the enforcement authorities.

AddedArticle 13 – paragraph 3 a (new): 3a. Enforcement authorities shall make publicly available aggregated information regarding the number of complaints lodged against undertakings and public authorities due to violation of Article 3 of this Regulation.

AddedArticle 13 – paragraph 5: 5. Where appropriate, enforcement authorities shall forward the complaints received regarding late payments in the agricultural and food sector to the competent enforcement authorities under Directive (EU) 2019/633.

AddedArticle 13 – paragraph 5 a (new): 5a. This Article shall be without prejudice to the provisions of Regulations (EC) 805/2004, (EC) 1896/2006, (EC) 861/2007 and (EU) 1215/2012.

AddedArticle 14 – paragraph 1 – introductory part: 1. Enforcement authorities shall have the necessary human, financial and technical resources and expertise to perform their duties effectively, and shall have the following powers:

Article 14 – paragraph 1 – point d: (d) the power to take decisions finding an infringement of this Regulation and requiring the debtor to pay interest for late payment as provided for in Article 5 or requiring the debtor to compensate the creditor as provided for in Article 8 or both;

Change 11

ChangedArticle 14 – paragraph 1 – subparagraph 1 a (new): The Commission shall checkassess whetherhow the enforcement authorities carry out all the tasks conferred to them under this Regulation in an effective manner.Regulation.

Article 14 – paragraph 3: 3. Member States shall, [without undue delay and in any case not later than 12 months from the entry into force of this Regulation], notify the Commission of those rules and of those measures and shall notify it, without delay, of any subsequent amendment affecting them.

Change 12

RemovedArticle 14 a (new): Article 14a / Reporting obligations / 1. Large undertakings, as referred to in Article 3(4) of Directive 2013/34/EU shall report on a yearly basis on their payment practices. / 2. Reporting obligation referred to in paragraph 1 shall contain: / (a) the amount, in EUR, of invoices paid: / – 1 to30 days after the deadline referred to in Article 3(1) of this Regulation; / – 31 to60 days after the deadline referred to in Article 3(1) of this Regulation; / – 61 to90 days after the deadline referred to in Article 3(1) of this Regulation; / – more than 90 days after the deadline referred to in Article 3(1) of this Regulation; / (b) the amount, in EUR, of invoices received: / – 1 to30 days after the deadline referred to in Article 3(1) of this Regulation; / – 31 to60 days after the deadline referred to in Article 3(1) of this Regulation; / – 61 to90 days after the deadline referred to in Article 3(1) of this Regulation; / - more than 90 days after the deadline referred to in Article 3(1) of this Regulation; / (c) average time to pay an invoice. / 3. The report referred to paragraph 1 of this Article shall be submitted by the large undertakings to the Member State enforcement authority referred to in Article 13 and be accessible to the public.

AddedArticle 15 – paragraph 3: 3. The enforcement authority shall take the necessary measures for the appropriate protection of the identity of the complainant. The complainant may submit a complaint to the enforcement authority anonymously or identify any information for which it requests confidentiality.

RemovedArticle 18 – paragraph 1: By [OP: please insert the date = 4years after the entry into force of this Regulation and every 4 years thereafter], the Commission shall submit a report on the implementation of this Regulation to the European Parliament and the Council.

AddedArticle 15 – paragraph 4: 4. The enforcement authority that receives the complaint shall inform the complainant within 30 days after the receipt of the complaint of how it intends to follow up on the complaint.

RemovedArticle 19 – paragraph 1 a (new): However, from [the date of application of this Regulation] until [24 months after the entry into force of this Regulation], it shall continue to apply to the situations where micro-undertakings referred to in Article 3(1) of Directive 2013/34/EU are debtors.

AddedArticle 15 – paragraph 5: 5. Where an enforcement authority considers that there are insufficient grounds for acting on a complaint, it shall inform the complainant of the reasons of its decision within 30 days after the receipt of the complaint.

RemovedArticle 20 – paragraph 2: 2. It shall apply from [OP: please insert the date = 12 months after the date of entry into force of this Regulation], subject to Article 19(1a).

AddedArticle 15 – paragraph 6: 6. Where an enforcement authority considers that there are sufficient grounds for acting on a complaint, it shall initiate, conduct and conclude an investigation of the complaint within 90 days after the receipt of the complaint.

AddedArticle 15 – paragraph 7 a (new): 7a. The Commission shall make a standard EU complaint form available for the enforcement authorities of the Member States.

AddedArticle 16 – paragraph 1: 1. Without prejudice to the right of creditors to submit complaints under Article 15, and to the obligations and powers of enforcement authorities laid down in Articles 13, 14, and 15, Member States shall promote the voluntary use of effective and independent alternative dispute resolution mechanisms for the settlement of disputes between debtors and creditors. Notwithstanding the provisions of Articles 5(3), 8(3), and 9(1) point (b) of this Regulation, parties to the agreement may engage in negotiations to reach an amicable settlement regarding disputed debts.

AddedArticle 16 a (new): Article 16a / Reporting obligations / 1. Contracting authorities, as referred to in Article 2(1) of Directive 2014/24/EU, shall report on a yearly basis on their payment practices. / 2. Reporting obligation referred to in paragraph 1 shall contain: / (a) the amount, in EUR paid: / – 1 to 30 days after the deadline referred to in Article 3 of this Regulation; / – 31 to 60 days after the deadline referred to in Article 3 of this Regulation; / – 61 to 90 days after the deadline referred to in Article 3 of this Regulation; / – more than 90 days after the deadline referred to in Article 3 of this Regulation; / (b) average time to pay an invoice. / 3. The report referred to in paragraph 1 of this Article shall be submitted, in an electronic form, by the contracting authorities to the Member State enforcement authority referred to in Article 13 and be accessible to the public.

AddedArticle 17 – paragraph 2: 2. Member States shall ensure that invoice and credit management tools, including factoring and similar financing services, as well as financial literacy trainings and any other initiatives that tackle late payment are available and accessible to small and medium sized enterprises, including on the use of digital tools for timely payments.

AddedArticle 17 a (new): Article 17a / European Observatory of late payments / 1. The Commission shall set up an Observatory of Late Payment (The Observatory) by ... [OP: date of application of this Regulation]. / 2. The Observatory shall monitor payment as well as late payment practices within the Union in order to collect and share expertise, best practices and identify potential harmful practices, as well as effectiveness of enforcement authorities in carrying out their tasks, with a view to provide the Commission with advice and expertise on the evolution of payment and late payment practices. / 3. Member States shall communicate to the Observatory: / a) lists of goods and services subject to the procedure of acceptance or verification set out in Article 3(2). / b) aggregated data containing information referred to in Articles 13(3a), 14(1), 14(2) and 16a(3); / c) information regarding enforcement authorities, number of complaints and investigations and measures taken; / 4. The Observatory shall issue annual reports, opinions and written contributions related to the implementation of this Regulation, including the assessment and guidelines for the effective enforcement of this Regulation. / 5. The Observatory shall be chaired by the Commission and shall be composed of representatives of relevant experts and stakeholders. The composition of the board shall ensure a balanced representation of all interested stakeholders.

AddedRegulation (EC) No 1896/2006

AddedArticle 17 b (new), Article 7, Article 12 and Article 16: Article 17b / Amendments to Regulation (EC) No 1896/2006 / Regulation (EC) No 1896/2006 is amended as follows: / (1) Article 7 is amended as follows: / (a) paragraph 5 is replaced by the following: / "5. The application shall be submitted electronically." / (b) paragraph 6 is replaced by the following: / "6. The application shall be signed electronically in accordance with Article [2(2)] of Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market . This signature shall be recognized in the Member State of origin without any further conditions being imposed. Member States shall introduce alternative electronic communication systems that allow secure identification of users. In this case, an electronic signature shall not be required." / (2) Article 12(1) is replaced by the following: / "1. If the conditions set out in Article 8 are fulfilled, the court shall issue a European order for payment using form E as set out in Annex V within 14 days of the lodging of an application. In calculating the 14-day period, the time taken by the claimant to complete, correct or amend the application shall not be taken into account." / (3) Article 16(2) is replaced by the following: / "2. The statement of opposition shall be sent to the defendant within 14 days from the date of service of the order for payment."

AddedRegulation (EC) No 861/2007

AddedArticle 17 c (new), Article 7, Article 13 and Article 18: Article 17c / Amendments to Regulation (EC) No 861/2007 / Regulation (EC) No 861/2007 is amended as follows: / (1) Article 7 is amended as follows: / (a) paragraph 1 is replaced by the following: / "1. Within 14 days of receiving the defendant's or claimant's replies within the time limit laid down in Article 5(3) or (6), the court shall give judgment or proceed as follows: / (a) invite the parties to provide further information relating to the claim within a specified period, which shall not exceed 14 days; / (b) take evidence in accordance with Article 9; / (c) summon the parties to an oral hearing, which shall take place within 14 days of the summons." / (b) paragraph 2 is replaced by the following: / "2. Member States shall introduce alternative electronic communication systems that allow secure identification of users. In this case, an electronic signature shall not be required." / 2. In Article 13, the following paragraph is added: / "4a. The documents referred to in Article 5(2) and (6) and judgments given in accordance with Article 7 shall be served by electronic means from 1 January 2027. Service shall be evidenced by an acknowledgement of receipt stating the date of receipt. All correspondence other than that referred to in paragraph 1 between the court and the parties or other persons involved in the proceedings shall be transmitted by electronic means with acknowledgement of receipt. Member States shall provide the technical means necessary for this by 1 January 2…

AddedArticle 18 – paragraph 1: By [OP: please insert the date = 4 years after the entry into force of this Regulation] and every 3 years thereafter, the Commission shall submit a report on its implementation to the European Parliament and the Council.

AddedArticle 18 – paragraph 1 a (new): The report shall assess the following: / (a) the impact of the scope as laid down in Article 1, including the impact on specific sectors and on specific business models; / (b) the impact of the measures implemented, in particular regarding the payment periods as laid down in Article 3, on increasing the cash flow and liquidity on the market; / (c) the effectiveness of the enforcement authorities as laid down in Articles 13, 14 and 15; / (d) the potential benefits, of introducing EU wide e-invoicing, to shortening payment periods on the market;

AddedArticle 18 – paragraph 1 b (new): Member States shall provide the Commission with the necessary information for the preparation of that report, including information regarding the investigations, inspections, decisions, proceedings and publications of the enforcement authorities referred to in Article 14(1).

AddedArticle 18 – paragraph 1 c (new): The report shall include an evaluation of the impact of this Regulation on the commercial transactions and of the impact of the European Observatory of late payments on monitoring late payment practices in the EU.

AddedArticle 18 – paragraph 1 d (new): The report shall be accompanied by a legislative proposal, if necessary and appropriate.

AddedArticle 19 – paragraph 1 a (new): However, from [the date of application of this Regulation] until [24 months after the entry into force of this Regulation], it shall continue to apply to the situations where micro-undertakings referred to in Article 3(1) of Directive 2013/34/EU and self-employed are debtors.

AddedArticle 20 – paragraph 2: 2. It shall apply from [OP: please insert the date = 18 months after the date of entry into force of this Regulation], subject to Article 19, second subparagraph.