The lump-sum recovery indemnity of the LME Act:
Since January1, 2013 under the general framework of the LME Act, any debtor company that pays an invoice after the payment deadline has expired must pay its creditor a flat-rate compensation for collection costs.
Reserved for transactions subject to the Commercial Code, this indemnity, set at €40, is intended to :
- to encourage debtors to respect payment deadlines;
- compensate creditors for collection, administrative and internal costs associated with late payment.
The mention of this indemnity as well as its amount must appear in the general sales conditions (GSC) and on the invoice. The absence of mention is sanctioned by a fine of 15 000 €.
As this allowance only concerns professionals, companies that also have private customers are invited to provide two invoice models to avoid any risk of confusion.
- This indemnity, which is not subject to VAT, is due in addition to the late payment penalties and does not exclude the possibility of requesting additional compensation.
- It must be attached to the fiscal year of its receipt or payment.
The fixed indemnity of collection of the LME Law is the only indemnity that a creditor can claim in the framework of an amicable collection from his debtor.