Invoice Due Dates: What the Law Says and How to Set Them

An invoice due date seems like a simple thing — you write in a date and you're done. But in practice, it's not that straightforward. The law sets out rules that differ for business-to-business transactions, public procurement, and consumer sales. A poorly set due date can cost you money or even your right to claim late payment interest. In this article, we'll walk you through everything you need to know.

What Is an Invoice Due Date?

An invoice due date is the deadline by which the customer must pay the invoiced amount. Once this deadline passes, the customer is in default and the supplier becomes entitled to late payment interest.

Key Terms

• Issue date — the day the invoice was created
• Delivery date — the day the customer received the invoice (due dates are often calculated from this date)
• Due date — the last day by which payment must be credited to the supplier's account
• Tax point date (DUZP) — the date on which goods were delivered or services were provided

Legal Framework for Due Dates in the Czech Republic

Payment due dates are governed primarily by the Civil Code (Act No. 89/2012 Coll.), specifically Sections 1963 and 1964. Let's look at each situation.

Due Dates Between Businesses (B2B)

The following rules apply to transactions between businesses:

Due Dates for the Public Sector (B2G)

If you supply goods or services to public institutions (government agencies, municipalities, publicly funded organisations), stricter rules apply:

Due Dates for Consumers (B2C)

For transactions between a business and a consumer, the law does not set specific rules for invoice due dates. The general provisions of the Civil Code apply — a debt is payable immediately unless the parties agree otherwise.

In practice, consumer invoices are typically settled:

• Immediately — at the point of sale (cash or card)
• On delivery — cash on delivery for parcels
• In advance — by bank transfer based on a pro forma invoice
• With a due date — for longer-term arrangements (subscriptions, services)

How to Set Invoice Due Dates Correctly

Choosing a due date is a strategic decision that affects your cash flow. Here are some practical recommendations:

Recommended Due Dates by Type of Business

Strategies for Better Cash Flow

When Does the Due Date Start Running?

Correctly identifying when the payment period begins is crucial. The law distinguishes several scenarios:

Option 1: Due Date from Invoice Receipt

The most common approach. A 30-day due date from invoice receipt means:

• If you send the invoice by email on 1 March and the client receives it the same day, it is due on 31 March
• If you send it by post on 1 March and the client receives it on 5 March, it is due on 4 April

Option 2: Due Date from Issue Date

If your contract specifies a due date of "14 days from the issue date," the period runs from the date printed on the invoice, regardless of when it was received.

Option 3: Due Date as a Specific Calendar Date

The simplest option: state a specific due date on the invoice (e.g. "Payment due by 15 March 2026"). No room for disputes.

Option 4: Due Date from Acceptance of Goods or Services

In contracts where the invoice delivery date is unclear, the due date is calculated from the date the goods were received or the service was completed.

Late Payment Interest: What You're Entitled to When a Client Pays Late

As soon as a customer fails to pay an invoice by the due date, they are automatically in default. From the following day, you are entitled to late payment interest.

Statutory Late Payment Interest in 2026

The rate of statutory late payment interest is governed by Government Regulation No. 351/2013 Coll. It equals the Czech National Bank's (CNB) repo rate on the first day of the calendar half-year in which the default occurred, plus 8 percentage points.

Contractual Late Payment Interest

You can agree on a custom late payment interest rate in your contract. If you do, the contractual rate replaces the statutory one — you cannot combine both.

The contractual rate must not be disproportionately high, as a court could declare such a clause invalid. A rate of up to approximately 0.05–0.1% per day is generally considered reasonable.

Flat-Rate Compensation for Recovery Costs

In addition to late payment interest, in B2B relationships you are also entitled to a flat-rate compensation of 1,200 Kč for recovery costs (Section 1963(3) of the Civil Code). This amount is owed automatically, regardless of your actual costs.

Invalid Payment Term Clauses

Some contractual provisions regarding due dates are void by law or subject to restrictions:

Due Dates Longer Than 60 Days in B2B

A due date exceeding 60 days is only permissible if:

• It is not particularly disadvantageous for the creditor
• It is justified by the nature of the obligation
• It was explicitly agreed upon (not merely included unilaterally in general terms and conditions)

If these conditions are not met, the statutory 30-day period applies.

Due Dates Longer Than 30 Days in B2G

In the public sector, any payment term exceeding 30 days is always invalid. No exceptions.

Excluding Late Payment Interest

Any clause that excludes or limits the creditor's right to late payment interest is invalid if it is particularly disadvantageous to the creditor.

Due Dates and VAT: When Does the Tax Liability Arise?

The invoice due date has no direct bearing on when VAT must be declared. VAT is declared on the tax point date (DUZP) or on the date payment is received — whichever comes first.

| Event | Impact on VAT | |-------|---------------| | Delivery of goods/services (DUZP) | Obligation to declare VAT | | Receipt of a deposit | Obligation to declare VAT on the deposit | | Issuing the invoice | No impact on VAT (if DUZP has already occurred) | | Payment due date | No impact on VAT | | Receipt of overdue payment | No impact (VAT already declared) |

Statute of Limitations After the Due Date

Once an invoice becomes overdue, the limitation period begins to run. Key facts for businesses:

• General limitation period: 3 years from the due date
• Maximum limitation period: 15 years (cannot be extended by contract)
• After acknowledgement of debt: a new 10-year period begins
• Interruption of limitation: by filing a lawsuit or the debtor acknowledging the debt

Due Date Formats on Invoices: Practical Options

There are several ways to state the due date on an invoice:

| Format | Example | Advantage | |--------|---------|-----------| | Specific calendar date | "Payment due by 15 March 2026" | Clear and unambiguous — no room for disputes | | Number of days from issue date | "Due 14 days from issue date" | Clear, as long as the issue date is legible | | Number of days from receipt | "Due 30 days from receipt" | Statutory standard, but harder to prove delivery | | Immediately | "Due immediately" or "Due upon receipt" | For cash payments and instant settlements |

Recommendation: The safest option is to state a specific due date. It avoids any disputes about when the invoice was received.

Frequently Asked Questions (FAQ)

What is the minimum invoice due date?

The law does not set a minimum. Technically, an invoice can be due "immediately." In practice, however, it's unrealistic to expect a bank transfer on the same day the invoice is issued. Seven days is a sensible minimum.

Can a client unilaterally extend the due date?

No. The due date is a contractual term agreed upon by both parties. A client cannot unilaterally change the due date stated on an invoice. If the client fails to pay on time, they are in default regardless of their "internal processes."

Does the 30-day rule apply even if the invoice has no due date?

Yes. If the invoice does not include a due date and the contract does not specify one either, the statutory 30 days from invoice receipt applies (Section 1963 of the Civil Code).

Are due dates counted in calendar days or working days?

In calendar days, unless the parties agree otherwise. The only exception: if the last day of the due date falls on a weekend or public holiday, it shifts to the next working day.

Can I set different due dates for different clients?

Yes. Due dates are a contractual matter and can be set individually for each client. You might offer longer terms to long-standing, reliable clients, and shorter terms to new ones.

What should I do if a client consistently pays late?

You have several options: shorten the payment terms, require deposits, charge late payment interest, end the business relationship, or switch to payment in advance. Have an open conversation about it first — sometimes a simple change on the client's end is all it takes.

Does late payment interest run from the due date or the day after?

Late payment interest runs from the day following the due date. If the due date is 15 March, the first day of default is 16 March.

Automatic Due Date Tracking with DokladBot

Manually tracking due dates across dozens of invoices is error-prone. One overlooked invoice can mean months without payment.

Useful Links to Official Sources

• Act No. 89/2012 Coll., Civil Code (Sections 1963–1964 on due dates)
• Government Regulation No. 351/2013 Coll. on late payment interest
• Czech National Bank — current repo rate
• Moje daně portal — electronic filings
• EU rules on late payments

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This article is for informational purposes only and does not constitute professional legal advice. Legislation is subject to change — always verify the current wording of the law. Last updated: February 2026.