Legal term for payments in Poland

Yes, payment term legislation in Poland is essentially based on EU Directive 2011/7/EU on combating late payments in commercial transactions, but goes beyond the common EU legal framework by imposing stricter legal requirements on contracting with SMEs, additional reporting obligations and more extensive supervisory measures.

2. Is there a standard payment term set out in law? If so, what is it?

The standard payment term is 30 days.

3. What are the circumstances in which parties may contractually agree to extend payment beyond the standard payment term?

An extension of the payment term up to 60 days does not involve any specific requirements. 60 days is the maximum payment term for transactions between a non-SME buyer and an SME seller.

An extension of the payment term beyond 60 days requires the payment term to be expressly provided in the contract and to not be grossly unfair to the seller e.g. it must not be a gross deviation from good commercial practice, must not be contrary to principles of good faith and fair dealing, and must reflect the nature of the product and delivery schedule.

4. May an obligation beyond the standard payment term be evidenced in a PO?

Yes, assuming that the PO is a standard contract or refers to the framework contract. Any payment term beyond 60 days must be expressly stated in the contract.

5. Are there any penalties for breach of payment term legislation other that a civil claim of the seller?

No, but all PTs which an applicable court considers to be non-compliant with the relevant payment term legislation are automatically replaced by statutory PTs. This may trigger administrative proceedings for excessive delays and may result in fines.

No such legislation has yet been adopted.

7. Any additional comments

From the 31st day the creditor has a right (but not an obligation) to claim statutory interest, even if the parties have agreed otherwise.

Portrait ofIain Batty
Iain Batty
Partner
Warsaw
Adrian Latoszek