Legal term for payments in Serbia

Payment terms in commercial transactions are subject to the Law on Payment Terms in Commercial Transactions (“Official Gazette RS”, nos. 119/2012, 68/2015, 113/2017 and 91/2019 and 44/2021. The Law applies to all commercial transactions, such as delivery of goods and the provision of services for remuneration including the design and execution of public works, building and civil engineering works and utility services, irrespective of whether they are carried out between private or public undertakings or between undertakings and public authorities.

The Law requires private undertakings to pay their invoices within 60 calendar days. 
In commercial transactions where the debtors are public authorities or public undertakings, the payment period cannot exceed 45 calendar days. However, the statutory payment period can be extended when the debtor is the National Healthcare Fund or public healthcare service providers, up to a maximum of 90 calendar days.

The Law allows for an exception to the statutory payment term for commercial transactions between businesses where the debtor or contract beneficiary has provided security in the form of a bank guarantee, which contains the term “irrevocable”, “unconditional”, “collectible upon the first call without contestation” or promissory notes endorsed by a bank. Another exception is made for a contract where payment is in installments and where the payment period can be extended up to a maximum of 90 calendar days. However, in such a case, at least 50% of the debt must be paid by the first half of the payment period. Finally, the statutory period can be extended for payments by an agricultural household or agricultural cooperative in the event of the purchase of raw materials for performing core commercial activities (e.g. seeds and planting materials, pesticides, and fertilisers).

Yes, assuming that the PO is a standard contract or refers to the framework contract. Any payment term beyond 60 days is possible only in cases that qualify as exemptions and only if expressly stated in the contract.

Yes, creditors are entitled to claim interest arising from late payment, but also to claim a fixed amount of RSD 20,000 (approx. EUR 170). The creditors can also claim compensation for costs in recovering the incurred debt.

Late payment also constitutes a misdemeanor that may be sanctioned by an administrative fine ranging between RSD 100,000 (approx. EUR 850) and RSD 2,000,000 (approx. EUR 17,000) for undertakings and public entities. The responsible person may be inflicted with a fine ranging from RSD 5,000 (approx. EUR 45) to RSD 150,000 (approx. EUR 1,200).

No such legislation has yet been adopted.