Legal term for payments in Slovakia

Yes, payment term legislation in Slovakia is essentially based on EU Directive 2011/7/EU on combating late payments in commercial transactions.  Payment terms are generally governed by Act No. 513/1991 Coll. Commercial Code.

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

Yes, for private business enterprises it is 60 days; for public bodies and bodies that are subject to administrative legal framework, the standard payment term is set for 30 days. The length of the payment term may be contractually agreed upon between business partners. Otherwise, there is no minimum period set out by law.

3. In what circumstances may parties contractually agree to extend payment beyond the standard payment term?

The parties may expressly agree to a longer payment term. The 60-day period may be extended and is only applied in exceptional cases. Such an agreement must not be grossly unfair and disproportionate to the rights of the creditor agreed to in the contract.

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 since any payment term beyond 60 days must be expressly stated in the contract.

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

No, but payment terms, which the court considers to be non-compliant with the relevant payment-term legislation, are automatically replaced by statutory payment terms. This may result in automatic entitlement of the seller/creditor to statutory interest of at least 8% above the European Central Bank’s reference rate and compensation for incurred recovery costs of at least EUR 40.

6. Is there any special legislation regarding payment obligations for the COVID-19 situation?

No such legislation has 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 ofSoňa Hanková
Soňa Hanková
Partner
Bratislava