FaighPaidHow much interest can you charge on an overdue Irish invoice?
2026-09-15 · FaighPaid
When an Irish commercial customer pays late, Irish law implies a right to interest and a flat compensation sum — automatically, even if nothing on the invoice says so. Here is what the rules actually give you.
Where the right comes from
For commercial (business-to-business) transactions, the European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580/2012) make statutory interest an implied term of the contract. In plain terms, it applies to every B2B transaction from 16 March 2013 onward — you do not need the client to have agreed to it in writing.
The rate: ECB rate + 8 percentage points
The statutory interest rate is the European Central Bank's main refinancing rate plus 8 percentage points. The ECB rate that applies depends on the half-year the debt falls in, and it resets in January and July. Facelookup: the applicable rate changes with the ECB, so always check the rate in force on the date the payment became due before you send a final notice.
The compensation sum is tiered by the size of the debt
On top of interest, you can also claim a fixed compensation sum. It is not a flat €40 in every case — it is tiered by the invoice amount:
- ≤ €1,000 → €40
- > €1,000 and ≤ €10,000 → €70
- > €10,000 → €100
You may also be able to claim reasonable recovery costs (such as debt-collection or legal fees) beyond the fixed sum.
Why most Irish suppliers never charge it
Surveys of Irish SMEs repeatedly find that only a small fraction ever add late-payment charges, and the most common reason is fear of damaging the relationship with a big customer. An automated, arm's-length notice that cites the law can take the awkwardness out of it.
What FaighPaid does with this
On an overdue invoice, FaighPaid's one-click chase applies the statutory late charge under S.I. 580/2012 — the relevant rate plus the tiered compensation — and produces an itemised notice that restates the balance and links your payment page. Every step is recorded on the invoice timeline.
FaighPaid is a free Irish invoicing tool with a built-in payment chaser. Not legal or tax advice — check Revenue.ie and, for decisions about your own tax, your accountant.