How do I choose the correct start date for statutory interest in Belgium?
In this article, you will learn which start date you should select for interest calculation as a Payt user in Belgium.
How is the start date for interest calculation determined?
In Belgium, different rules apply to small and large businesses regarding the date from which you may charge interest on an invoice:
- Small businesses: If an invoice has not been paid within the standard payment term of 14 days after sending the final reminder, you may charge interest from the day after that final reminder was sent.
- Large businesses: If an invoice has not been paid within the standard payment term of 14 days after sending the final reminder, you may charge interest only after that term has expired, meaning 14 days after the final reminder.
How do I know whether my business is large or small?
To determine which rules apply to your business, use the legal criteria below.
You are considered a large business (and may therefore charge interest later) if you meet at least two of the following conditions:
- Average annual number of employees: 50 or more
- Annual turnover, excluding VAT: €9,000,000 or more
- Balance sheet total: €4,500,000 or more
If you meet no more than one of these criteria, you are considered a small business under the law and may charge interest earlier.
Read more: General rules for late payment (Dutch)
How do I configure the correct interest calculation in Payt?
- Open the administration settings via the gear icon at the top right in Payt.
- Select the 'Interest' tab on the left.
- Under 'Start date for interest calculation', choose the correct option:
- Small business: Select final reminder.
- Large business: Select Ready for collections.