The Malta Chamber of SMEs welcomes MCESD Chairperson David Xuereb to its offices
01 February 2024
Malta Chamber of SMEs President Mr Paul Abela and Deputy President Mr Philip Fenech welcomed...
As of January 1, 2024, the interest rate for late payments in commercial transactions in Malta has increased to 12.5%, previously being at 12%. This adjustment is made on January 1 and July 1 each year.
The Late payments directive was implemented in 2012, addressing late payments in commercial transactions. Under this directive, creditors have the right to charge interest on late payments at a rate of 8% plus the European Central Bank reference rate. This interest is calculated from the day following the agreed payment date or contract-end date.
When payment terms are unspecified, the creditor can claim interest 30 calendar days from the receipt of goods or services, or from the invoice date. The agreed payment period in the contract cannot exceed 60 calendar days, unless both parties expressly agree on a longer period that is not grossly unfair to the creditor.
Creditors can pursue late payment claims without reminding debtors, especially in transactions between undertakings and public authorities. In such cases, the payment period is 30 days unless otherwise agreed, with a maximum of 60 days if specified in the contract.
The Late payments directive is currently being revised in order to ensure more proportionality adding more safeguards to clauses already included. This is to ensure SMEs are safeguarded.
If you would like to know more about this directive, please do not hesitate to get in touch.
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).