Interest on an invoice refers to the additional charge applied when a client fails to pay on time or breaches the agreed payment terms stated in a contract or invoice. This is meant to compensate for the delay and encourage timely payments.
How is the interest rate determined in the Netherlands?
The statutory interest rate (wettelijke rente) is set by the Dutch government and differs depending on the type of transaction:
For business-to-business (B2B) and government transactions:
- The statutory commercial interest rate applies.
- As of January 1, 2025, this rate is 11.15% per year.
For transactions with consumers (B2C):
- The standard statutory interest rate applies.
- As of January 1, 2025, this rate is 6% per year.
These rates are subject to change, so always check the latest updates from the Dutch government here.
How does the interest rate work in our platform? In our system:
- The default interest rate is set to 0% (no interest).
- You can adjust it up to a maximum daily rate of 0.0306% (equivalent to 11.15% per year), which aligns with the statutory commercial interest rate for businesses in 2025.
Note: If you are invoicing consumers (B2C), you should apply a maximum of 6% per year in interest, unless otherwise agreed in a contract.
What if I don’t want to charge interest?
If you prefer not to apply interest, simply set the interest rate to 0% in the invoice settings. This way, your invoice will not include any late payment fees.