Free tool
Late payment interest calculator, Ireland, ECB rate plus 8 points
Work out the statutory interest and recovery compensation due on an overdue commercial invoice in Ireland under S.I. No. 580/2012, which implements the EU Late Payment Directive.
- Interest = unpaid amount × annual rate × days overdue ÷ 365.
- The statutory rate is the ECB main refinancing rate plus 8 percentage points, set on 1 January and 1 July for the following half year.
- Compensation is added once per late invoice: 40 euro below 1,000 euro, 70 euro from 1,000 to 9,999.99 euro and 100 euro from 10,000 euro.
What interest can I charge on a late invoice in Ireland?
The ECB main refinancing rate plus 8 percentage points on business to business and public sector debts, under the European Communities (Late Payment in Commercial Transactions) Regulations 2012.
When does interest start to run?
From the day after the agreed due date, or 30 days after invoice receipt or delivery where no date was agreed.
How much compensation can I add?
A fixed amount depending on the debt: 40 euro under 1,000 euro, 70 euro up to 9,999.99 euro and 100 euro from 10,000 euro, plus documented costs above that.
Is the interest calculated on the VAT inclusive amount?
Yes, on the total amount outstanding, because that is the sum the customer was obliged to pay.
Do I charge VAT on the interest?
No. Late payment interest and compensation are outside the scope of Irish VAT.