Late Payment Interest on Commercial Transactions in Poland

This guide is general legal information, not legal advice. How the rules apply depends on your individual circumstances, and the matter should be assessed by a qualified Polish lawyer. Twoja Sprawa helps you organise the documents for that assessment.

Has your business partner in Poland missed an invoice deadline? Polish law gives a B2B creditor a strong weapon: late payment interest on commercial transactions is significantly higher than ordinary civil-law interest, and on top of that you may be entitled to a flat compensation payment of €40, €70 or €100 for the mere fact of the delay — with no need to prove you incurred any costs at all. What matters most for Poles living in the UK: the whole case can be run remotely, on the basis of a power of attorney given to an advocate (adwokat) or legal counsel (radca prawny, a Polish legal professional broadly equivalent to a solicitor) in Poland, without ever needing to travel there.

This article explains when this interest applies, how to calculate it, how much the compensation is, and how to pursue payment from England.

What is late payment interest on commercial transactions

The legal basis is the Act of 8 March 2013 on Counteracting Excessive Delays in Commercial Transactions (ustawa o przeciwdziałaniu nadmiernym opóźnieniom w transakcjach handlowych, formerly known as the Act on Payment Deadlines in Commercial Transactions). It implements EU Directive 2011/7/EU of the European Parliament and of the Council, which was designed to curb payment backlogs between businesses across the Union.

A "commercial transaction" under the Act means a contract for the paid supply of goods or paid provision of services, where both parties enter into it in connection with their business activity. In other words, this is about B2B relationships (business to business) — not transactions with a consumer.

The key difference from ordinary interest under the Polish Civil Code (Kodeks cywilny) is that late payment interest on commercial transactions is higher and applies automatically — by operation of law, with no need to send the debtor a formal demand for payment (Article 7 of the Act). It is enough that the payment deadline has passed and the creditor has performed their side of the contract. The creditor does not even need to show that the delay caused them any loss.

This mechanism was designed specifically so that late payment stops being "worth it" for debtors.

How much is the interest — the rate and how it is calculated

The rate of statutory late payment interest for commercial transactions is set as the National Bank of Poland (NBP) reference rate plus 10 percentage points (for transactions where the debtor is not a public healthcare entity). This rate is periodically announced by notice of the minister responsible for the economy.

For comparison: ordinary statutory interest for delay under the Civil Code is the NBP reference rate plus 5.5 percentage points — noticeably lower. A B2B debtor therefore pays a steeper price for delay.

How to calculate the interest in practice:

• From when — interest runs from the day after the agreed payment deadline expires, or after the statutory deadline expires if none was agreed.
• Until when — until the date payment is actually made.
• On what amount — on the gross value of the unpaid amount.
• At what rate — the rate in force for that particular half-year (the rate is typically adjusted on 1 January and 1 July each year).

Illustrative example: an invoice for 30,000 PLN, 90 days overdue. At a rate of roughly a dozen or so percent per year, interest for that period would come to approximately 1,000–1,100 PLN. This is only an approximate figure — the actual amount depends on the specific rate in force during the period and the exact number of days involved.

The current applicable rate should always be checked against the latest ministerial notice — which is why a letter before action should set out the method of calculation rather than just a fixed figure.

The €40 / €70 / €100 compensation for recovery costs

In addition to interest, a creditor is entitled to compensation for the costs of recovering the debt (Article 10 of the Act). This is a flat amount, charged per unpaid transaction, and its size depends on the value of the payment owed:

Key features of this compensation:

• No need to prove costs — it is payable for the fact of the delay alone, regardless of whether you actually incurred any debt-recovery expenses.
• Arises automatically — the right to it comes into being at the same moment as the right to interest, with no separate demand needed.
• Conversion to PLN is based on the average euro exchange rate published by the NBP on the last business day of the month preceding the month in which the debt fell due.
• If your actual recovery costs exceeded the flat-rate amount, you can pursue the higher, documented sum instead.

Where several invoices are overdue, the compensation amounts add up — which, with a chronically late-paying counterparty, can grow into a significant sum. Note that whether compensation can be claimed multiple times when a single debt is split into instalments is a contested point, assessed by the courts on a case-by-case basis.

Payment deadlines — when does the delay start counting

For interest to start running at all, the payment deadline has to have passed. The Act sets limits here:

• In transactions between businesses, the parties may generally agree a deadline of up to 60 days — a longer deadline is only permitted where it is not grossly unfair to the creditor.
• Where the debtor is a public-sector entity (other than a public healthcare provider), the payment deadline cannot exceed 30 days.
• Stricter protection applies in an asymmetric arrangement where the debtor is a large enterprise and the creditor is a micro, small or medium-sized business — in that case the payment deadline cannot exceed 60 days and cannot be extended by agreement.

If the parties did not fix a deadline in the contract, interest applies once the statutory deadline has passed, counted from delivery of the invoice or performance of the service. Pinning down the exact due date is crucial — it determines both when interest starts running and when the right to compensation arises.

How to recover a debt remotely from the UK

Live in the UK while your debtor operates in Poland? You don't need to travel. A claim for an unpaid invoice plus interest and compensation can be run entirely remotely:

1. Power of attorney — you grant power of attorney to an advocate (adwokat) or legal counsel (radca prawny) in Poland. It can be signed in the UK and sent over; for some steps, having it notarised may be useful. Note: a Polish notariusz (civil-law notary) is a distinct legal role from a UK notary public.
2. Documents — scans are sufficient: the contract or order, the invoice, proof of delivery or performance of the service, and correspondence with the debtor (including emails and messages).
3. Letter before action — your representative sends a pre-litigation demand setting out the interest and compensation calculated so far.
4. Court claim — if the debtor doesn't respond, the case goes to court. For straightforward payment claims, the electronic payment order procedure (e-Sąd / EPU) is often used, as it is quick and inexpensive.
5. Enforcement — once a payment order or judgment has been obtained, a Polish court bailiff (komornik) takes over enforcement.

All communication with your representative can happen by email, phone and online — your physical presence in Poland usually isn't required.

For more practical detail, see the related articles: How to Recover a Debt from a Polish Company, Poland's E-Court (EPU): Filing an Online Payment Claim, and Polish Payment Order (Nakaz Zapłaty): How to Get One and Enforce It.

It's also worth keeping an eye on time limits: claims between businesses are subject to limitation periods — see our article on the Statute of Limitations on B2B Debts in Poland for details.

Frequently Asked Questions

Do I have to send the debtor a demand for payment before interest can be charged? No. Late payment interest on commercial transactions applies by operation of law, automatically, once the payment deadline has passed and you have performed your side of the contract. A demand letter isn't a precondition for interest to accrue, although in practice it's usually worth sending one before starting court proceedings.

Is the €40/€70/€100 compensation payable on top of interest? Yes. These are two separate entitlements. The compensation is payable regardless of the interest, and regardless of whether you actually incurred any recovery costs. If your real costs were higher, you can pursue the higher, documented amount instead.

Does the Act cover transactions with consumers? No. The Act only covers commercial transactions — that is, B2B relationships between businesses (or involving a public-sector entity). Ordinary interest under the Civil Code applies to debts owed to or by consumers.

What is the current interest rate? The rate is the NBP reference rate plus 10 percentage points (for typical B2B transactions). The specific figure is announced by the minister in an official notice — the rate is usually adjusted every six months, so it should always be checked as at the date you're calculating.

Can I pursue these claims while living permanently in the UK? Yes. You simply need to grant power of attorney to a lawyer in Poland and send scanned documents. The case is handled remotely, with no need to travel back to Poland.

Legal basis

• Act of 8 March 2013 on Counteracting Excessive Delays in Commercial Transactions (ISAP) (Polish official text)
• Directive 2011/7/EU of the European Parliament and of the Council on combating late payment in commercial transactions (EUR-Lex)