Italy’s Fight Against Late Payments - New Rules Affecting Businesses And Public Authorities Entered In 'Commercial Transactions'

On March 15, 2011, a new EU Directive aimed at combating late payment in commercial transactions (2011/7/EU, the "Recast Directive") - repealing and modernising the Directive 2000/35/EC on the same matter - entered into force.

The Recast Directive was issued because late payments in commercial transactions are still seen as a significant problem in the EU; late payments hinder the free movement of goods and services between Member States, distort competition and are detrimental to smaller businesses. The Recast Directive aims to confront debtors with measures that discourage them from paying late, to provide creditors with measures enabling them to effectively exercise their rights when paid late and to create a level playing field across Member States.

Italy has transposed the Recast Directive by means of Legislative Decree November 9, 2012 No. 192("New Provisions") which has amended Legislative Decree October 9, 2002 No. 231 (which had implemented Directive 2000/35/EC). The New Provisions entered into force on November 30, 2012 and are applicable to commercial transactions starting from January 1, 2013.

Scope of application

The New Provisions apply to "late payment in commercial transactions".

"Commercial transactions" are defined as contracts between undertakings or between undertakings and public authorities which "lead, in an exclusive or prevalent way, to the delivery of goods or the provision of services for remuneration". It is important to highlight that such definition appears different from the one provided for by the Recast Directive, where "commercial transactions" are defined as: "transactions between undertakings or between undertakings and public authorities which lead to the delivery of goods or the provision of services for remuneration". As we will see below this appears to impact on the scope of application of the New Provisions.

The New Provisions do not apply to: contracts entered with consumers; payments made as compensation for damages, including payments from insurance companies; and debts that are subject to insolvency proceedings, including proceedings aimed at debt restructuring.

According to the New Provisions, undertaking means any organization acting in the course of its independent economic or professional activity, even where activity is carried out by a single individual; public authority is defined de relato making reference to the awarding authority provided for by the Legislative Decree No. 163/2006...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT