Getting paid in France: payment terms and late payment rules

• 30 days from delivery or completion of the service, when nothing has been agreed.
• 60 days from the invoice date: the standard maximum.
• 45 days end of month: an alternative, only if expressly agreed in the contract.

These are ceilings. You can agree shorter terms, never longer ones. Some sectors have stricter caps, such as road transport and perishable food. The rules apply to contracts governed by French law, which covers most sales to French customers.

• Penalties start automatically the day after the due date. No reminder or formal notice is needed.
• The rate is the ECB refinancing rate plus 10 points, unless your contract sets another one. A contractual rate cannot be lower than three times the French legal interest rate.
• A €40 fixed fee is due for each late invoice to cover recovery costs. If your actual costs are higher, you can claim more, with proof.

Neither the penalties nor the €40 fee carry VAT.

Your terms of sale must state the payment terms, the late payment penalty rate and the €40 fixed fee. Your invoices must show the due date, the penalty rate and the €40 fee.

Without these mentions, you weaken your position with a late payer and expose the company to fines.

Your French subsidiary is bound by the same limits as a buyer. A group-wide policy of paying suppliers at 90 days is not compatible with French law.

The DGCCRF, the French authority that checks commercial practices, can fine a company up to €2 million, doubled for a repeat offence within two years, and publish its name.

1. Invoice as soon as the work is delivered, not in a month-end batch. Every day of delay in invoicing is a day of delay in payment.
2. Ask for a deposit on large orders or long projects.
3. Get the purchase order number and the right accounts payable contact before invoicing. Large French companies often reject invoices that lack them.
4. Follow up on a fixed schedule: a reminder a few days before the due date, a call the day after.
5. Claim the penalties and the €40 fee from chronic late payers. Customers notice when you do.

We set up your French terms of sale and invoices, monitor your receivables and supplier payments, and report every month in English, so your French entity's cash stays under control.