Interest on an invoice refers to the additional charge applied when a client delays payment or breaches the agreed payment terms outlined in a contract or sales invoice. This is designed to compensate for the delay and incentivize timely payments.
How is the interest rate determined in the Netherlands?
The statutory interest rate for commercial transactions applies to deliveries to companies and government entities.
For deliveries to consumers, the statutory interest rate for non-commercial transactions applies.
The Dutch Central Bank (De Nederlandsche Bank, DNB) determines and publishes these statutory interest rates.
How does the interest rate work in our platform?
- In our system, the maximum daily interest rate is set at 0.0336%, which is the equivalent of 12.25% annually (calculated as 12.25 ÷ 365).
- Default Setting: The default interest rate in the system is set to 0%, but you are free to edit it to any rate up to the maximum daily rate of 0.0336%.
What if I don’t wish to add interest to an invoice?
If you do not want to apply interest, you can simply set the interest rate to 0% in the invoice settings.