The amendment to the Act on Combating Excessive Delays in Commercial Transactions, coming into force on December 8, 2022, has introduced a number of important changes for businesses. Unreliable debtors will face significantly harsher penalties for late payments, and the risk of official inspections will increase.
The amendment also limited the powers of the President of the Office of Competition and Consumer Protection (UOKiK) to waive the imposition of a fine. This applies to entities that themselves fell victim to negligent contractors. This option is no longer available. Waiving the fine will only be possible in cases of force majeure. Furthermore, the option of paying the fine in installments or deferring its payment due to a party's compelling interest has been added. For businesses, this means reviewing their internal procedures and payment processing.
A penalized entrepreneur will be entitled to a 20% discount on the fine imposed. This entitlement is conditional upon payment of the full fine within 14 days of the date of delivery of the decision and waiving the right to appeal. This entitlement will not apply if the entrepreneur is penalized again, in which case the fine will be increased by 50%.
A significant change, effective January 24, 2023, is the ban on large businesses blocking the ability of their micro, small, or medium-sized business partners to transfer receivables to other entities. Excluding or limiting the assignment of receivables will be ineffective in the event of failure to pay on time. Importantly, this will not apply to public entities or contracts concluded before the provisions in question enter into force.
The amendment also introduces a change in the deadline for submitting reports on payment terms applied in commercial transactions in the previous calendar year. The largest corporate income taxpayers, approximately 3,000 entities, whose list is published by the Ministry of Finance by September 30th each year, must prepare special reports on payment terms applied in commercial transactions. The new deadline for submitting the report is April 30th following the year covered by the report.
Furthermore, the amendment introduces the requirement for both the debtor and the creditor to submit a declaration of holding, obtaining, or losing large enterprise status in a given commercial transaction. Previously, only the debtor had to submit the relevant declaration.
The amended act was passed by the Sejm on November 4, 2022. The President signed it on November 14, 2022, and it comes into force in two rounds. Some provisions entered into force on December 8, 2022, while others entered into force on January 24, 2023.
This article is for informational purposes only and does not constitute legal advice.
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