Pre-action demand for payment between businesses (Poland)

Published byDocMuse

A creditor business's demand to a trading partner for overdue invoices: the principal, the list of invoices, statutory late-payment interest for commercial transactions and the fixed compensation for recovery costs — the equivalent of 40, 70 or 100 euro per payment — the deadline and the account. It is the attempt at amicable settlement the court asks about when a claim is filed (art. 187 § 1(3) of the Code of Civil Procedure).

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Common questions

Is the 40-euro compensation due on every overdue invoice in Poland?

Yes — it is due on each monetary payment in a commercial transaction, so usually on each invoice, and without any demand, as soon as the right to interest arises (art. 10(1) of the Act on Preventing Excessive Delays in Commercial Transactions). It is 40, 70 or 100 euro depending on the invoice amount. Where collection cost more, the justified excess can be claimed on top (art. 10(2)).

What interest applies to late payment between Polish businesses?

Statutory interest for delay in commercial transactions — the National Bank of Poland reference rate plus 10 percentage points where the debtor is not a public body (art. 4(3) of the Act on Preventing Excessive Delays in Commercial Transactions). The Minister of Justice announces the rate for each half-year. It is due without any demand from the due date, provided the creditor has performed its side.

Does a demand for payment have to be sent before suing in Poland?

The law does not require it outright, but a claim must state whether the parties tried to settle amicably and, if not, why (art. 187 § 1(3) of the Code of Civil Procedure). A demand also protects against costs: a defendant who gave no cause for the suit and admits the claim at once may avoid paying costs (art. 101). So it is worth sending by registered post or email with confirmation.