Can I charge interest on an overdue invoice?

Yes, you can charge interest on overdue invoices, but the rules vary by country. In many jurisdictions, including the EU, businesses have the right to charge statutory late payment interest from the day after the due date. The rate is often based on a legal benchmark, such as the central bank's reference rate plus a fixed percentage.

To charge interest, the terms must be clearly stated in the contract or invoice. If no specific rate is agreed upon, the statutory interest rate applies. Some countries also allow additional late fees.

If you need guidance on applying interest to overdue invoices, feel free to contact us for expert assistance.