Late payment interest for overdue invoices

D

DannyL

Registered User
Messages
33
We have a client that own us money for several months now. I'd like to charge him a late payment interest rate for that.

My question is how do I actually do that? Do I send him an invoice for the interest rate?
If so is interest rate VAT exempt or VAT that has been used on original invoice applies?
 
Hi
normally there is no vat charged on interest even if the original invoice had vat on it.
 
DannyL said:
We have a client that own us money for several months now. I'd like to charge him a late payment interest rate for that.
Click to expand...

Do you have a provision in your terms and conditions for charging interest for late payment? If not you may have to notify the client of your intention prior to billing them.
 
seantheman said:
Do you have a provision in your terms and conditions for charging interest for late payment? If not you may have to notify the client of your intention prior to billing them.
Click to expand...
There's none on the first invoice but there is a notification about interest rate on the other 2 unpaid invoices.
 
You must log in or register to reply here.
Menu
Log in
Register