Amendments to the Law on deadlines for settlement of financial obligations in commercial transactions
On December 14, 2017 the latest amendments to the Law on deadlines for settlement of financial obligations in commercial transactions were adopted. The amendments came into force on December 25, 2017.
Notwithstanding the enforcement date, most of the amendments will be applicable after technical-technological conditions are met. The amendments introduce new concept of Central invoice registry.
The importance of Central invoice registry lies in obligation to register all invoices or any other request for payment of debt issued to a public sector entity (including public company). The creditor (a public or private entity) is obliged to register invoices and other requests for payment issued to a public sector entity in the Central invoice registry before delivering them to the debtor. Afterwards, within 3 days after registration, the creditor is obliged to deliver the invoice or other request for payment to the debtor.
The debtor (a public sector entity) is obliged to settle its obligation only if the invoice or other request for payment are registered. Amendments also introduce new misdemeanors: creditor will be fined in case he does not register invoices or other requests for payment and debtor will be fined in case he settles his obligation arising from invoice or request for payment that are not registered.
For more information regarding this Law, please contact us at OFFICE@PRICAPARTNERS.COM