Call for Comments on Late Payment Regulation by the European Parliament and the Council

Dear members,

Following AmCham Bulgaria’s priority to serve its members, we would like to bring to your attention our call for comments with regard the update of the Late Payment Regulation by the European Commission. The process was initiated in Q3/2023, and right now – despite the forthcoming EU Elections in June – it will continue with the agreed timeframe. The potential adoption of this Regulation is Q3/Q4 2024, and within 18 months after its publication, it should be applied by the member states.

There are several areas of the proposed text that should be better clarified; thus the voice of the business is essential. AmCham Bulgaria’s goal here is to collect feedback from its members in the next 2-week time, to process it and to address the Government of Bulgaria. Also, we shall send our position to the AmCham to the European Union (AmCham EU, our sister-chamber that has strong voice in Brussels too).

The general objectives of the proposal are to:

  • Strengthen companies’ competitiveness and growth by improving the payment discipline of public authorities, large businesses and SMEs; and
  • Protect SMEs against the negative effects of late payment by setting rules that promote fair and timely payment in commercial transactions.

So far we are aware of two major organizations that have issued positions urging the EC for fair, balanced, and flexible approach towards the discussions and the finalization of the texts of the LPR.

Some of the critical areas that require clarification:

  • General based on the free market and existing regulation
    • Freedom of contract,
    • Consistency in application of rules – namely, there is already such a regulation in force – Directive 2019/633 that recognizes the different bargaining power and the size of different operators in agricutluratl sector
    • Late payments vs. long payment terms
    • Existing buyers that have longer payment terms to improve their working capital.
  • Definitions
    • of small- and medium-sized undertakings, and – on the contrary – large undertakings.
    • of “grossly unfair” about the contractual term of payment.
  • Introduction of e-invoicing
    • That would benefit the transparency in business, and will diminish the arguments about the date of the start of the payment period.

Dear members,

We will be glad receiving your feedback till May 8th, 2024, CoB in either English or Bulgarian send to [email protected]. On behalf of the chamber the contact person will be Daniel Kiryakov, Communications and Public Affairs Manager.

During this period, if needed, we could organize a joint conference call, having all the interested members, our CEO, and experts to discuss and agree AmCham Bulgaria joint position on LPR.

Best regards,

AmCham Bulgaria