How to bill penalties without error?

Here's what you need to remember charge penalties :

• Late payment penalties are only applicable between professionals if the due date is exceeded.

• The initial invoice must contain: the due date, the penalty rate (e.g.: ECB + 10 pts) and the €40 indemnity.

• The calculation is proportional to the number of days overdue: e.g.: €1,000 30 days overdue at 14.5% = €11.92 .

• Penalties are not subject to VAT, and are charged to account 758.

• No dunning is required to legally demand them.

• The customer cannot refuse if everything is as it should be on the invoice.

• Penalties lapse after 5 years (article 2224 of the French Civil Code).

• In the event of a dispute or excessive penalties, the judge may cancel or reduce them.

• Heropay helps you collect faster to avoid having to charge these penalties.

When can penalties be charged?

You can charge penalties if the invoice is due from a professional and the due date has passed.

Even without relance you have the right to demand penalties as soon as day after maturity if everything is in order.

What information must appear on the initial invoice?

To be able to charge penalties, the initial invoice must contain specific information, as required by Article L441-10 of the French Commercial Code .

Even if you don't apply them systematically, you must still include them clearly. Here are the compulsory elements:

Mention

This information must appear on all invoices issued between professionals .

Failure to do so may result in an administrative fine of up to 75,000 for an individual and 375,000 for a legal entity (article L441-16 of the French Commercial Code).

How do you calculate late payment penalties?

The French Commercial Code imposes a standard calculation method.

Legal calculation formula (ECB rate + 10 pts)

You must use the European Central Bank (ECB) key interest rate in effect on January 1 or July 1, increased by 10 points .

For example, if the ECB rate is 4,5 % the penalty rate will be 14,5 % annual.

Example of a €1,000 invoice

Assuming an invoice for €1,000 has been overdue since 30 days with a rate of 14.5%:

1,000 x 14.5 % x 30 / 365 = 11.92 € de pénalités de retard

The calculation is carried out au prorata temporis from the first day of delay.

How do I issue a penalty invoice?

Once the amount has been calculated, you need to enter it on a dedicated invoice.

Mandatory entry, VAT or not, accounting code to be used

• Invoice subject Late payment penalties on invoice no... dated [date]".

• TVA Penalties are not subject to VAT (art. 256 of the CGI)

• Accounting code Use the account 758 "Miscellaneous operating income

You can send this invoice even without prior customer acceptance This is the case if the information has been included in the initial invoice.

Can penalties be billed without prior reminders?

Yes. The law does not require a reminder to be sent in advance . Penalties apply automatically from day after maturity mentioned on the invoice.

In practice, a reminder often helps to avoid tensions, but it is not legally necessary to claim late payment interest and fixed collection costs.

What are the limits (deadlines, good faith)?

Even if the law allows you to invoice, there are certain principles you must respect.

• Prescription You can no longer claim penalties after 5 years (article 2224 of the French Civil Code)

• Good faith : You must not charge penalties on amounts contested or disputed

• Consistent amount If the rate is deemed excessive or disproportionate, the judge may set it at a lower rate. reduce

Copy and paste penalty invoice template

Here's an example to adapt:

Penalty invoice

• Number: P-2025-001

• Date: May 28, 2025

• Customer: SARL Dupont

• Subject: Late payment penalties on invoice no. F-2025-045 dated March 20, 2025

• Main invoice amount: €1,000

• 30 days past due date

• Interest rate: 14.5%.

• Penalty amount: €11.92

• Flat-rate compensation for collection costs: €40

• VAT : Not applicable

Total payable : 51,92 €

Heropay helps you avoid late payments

Charging penalties doesn't have to be your only recourse. With Heropay you can :

• Anticipating incoming payments thanks to immediate invoice financing

• Track payments in real time to act quickly in the event of delays

Heropay helps you regain control over your customer payments and avoid unpaid chronicles.