An invoice remains unpaid after its payment deadline. Is the customer already legally in default? Not necessarily. If you work for yourself in Germany, distinguishing payment terms, the due date and a formal payment demand helps you understand when you can request payment and claim default interest or costs.
The key terms
- Zahlungsziel — payment deadline: the payment period granted or the agreed payment date, such as “14 days after receipt of the invoice”.
- Fälligkeit — payment becoming due: the point from which you may demand the payment owed.
- Überfällig — overdue: a claim is due but unpaid. This alone does not establish legal default.
- Mahnung — formal payment demand: an unambiguous request to pay a debt that is already due.
- Zahlungsverzug — payment default: a legal situation with additional conditions and consequences, including possible default interest.
Agree payment terms and check when payment is due
Agree payment terms in your quotation or contract wherever possible, then reproduce the valid agreement on the invoice. A date added unilaterally for the first time on an invoice does not automatically replace a contractual agreement or trigger default without a demand. Germany’s Federal Court of Justice expressly confirmed this in a consumer case (III ZR 91/07).
There is no universal statutory payment period of 14 or 30 days. If no time for performance is agreed or apparent from the circumstances, payment is generally due immediately under section 271 BGB. Special rules take precedence: under a contract for work, remuneration is generally due on acceptance of the completed work (section 641 BGB). Defences and rights to withhold payment must be considered.
Very long payment periods cannot be agreed without limits. Section 271a BGB restricts them, especially periods exceeding 60 days and those involving public contracting authorities. Standard contract terms may also be subject to validity checks.
An example with dates
You have validly agreed “payment within 14 days after receipt of the invoice”. The work has been performed, the invoice arrives on 2 November 2026 and there are no defences. The day of receipt is not counted in this period: it ends on 16 November 2026. If payment is not made, default may begin on 17 November without a further demand under these conditions (section 286(2), point 2 BGB).
If a relevant deadline falls on a Saturday, Sunday or statutory public holiday at the place of performance, section 193 BGB generally needs to be considered. Also allow enough time for bank transfers.
Payment reminder or formal payment demand?
The heading is not decisive. A politely worded payment reminder can legally constitute a formal payment demand if it clearly identifies a debt that is due and requests payment. Such a demand does not generally have to be written, but its wording and receipt should be documented for evidence. The law does not require three demands.
A short template for an invoice that is actually due:
[Amount] euros remains outstanding on our invoice [number] dated [date]. Payment has been due since [date]. Please pay the outstanding amount by [specific date] into the account already provided, quoting the invoice number. If you have already paid or have any objections, please let us know.
An additional payment period is not essential for a formal demand, but can make communication clearer. Adapt the template to the circumstances and mention only costs or steps that are justified.
When does payment default begin?
Under section 286 BGB, default generally requires a due and enforceable claim, a demand made after payment becomes due, and continued non-payment. A debtor is not in default while the failure to pay is caused by circumstances for which they are not responsible.
A demand may be unnecessary, for example where a fixed payment date has been validly agreed or an appropriate payment period can be calculated by the calendar from a specified event. A date printed on an invoice does not automatically suffice.
The 30-day rule also applies to claims for payment for goods or services: default begins at the latest when 30 days have passed without payment after both the due date and receipt of the invoice. For consumers, this automatic effect applies only if the invoice specifically warns them of it. For non-consumers, where the invoice receipt date is uncertain, 30 days after the due date and receipt of the goods or services may instead be decisive. Default can begin earlier, for example following a demand. This rule therefore does not grant a universal cost-free payment period.
Default interest and reminder costs
Section 288 BGB distinguishes:
- General rule: five percentage points above the applicable base interest rate per year.
- Payment claims from transactions without consumer involvement: nine percentage points above the base rate per year.
- €40 lump sum: for default on a claim for payment where the debtor is not a consumer. It does not accrue again for every demand and is offset against recoverable debt recovery costs.
Percentage points are not percentage increases. Use the Deutsche Bundesbank base rate applicable to each part of the default period and account for changes during that period.
The cost of the demand that first places the debtor in default is generally not recoverable as damage caused by default. Subsequent necessary demands may justify recovery of reasonable actual expenses such as postage and paper, but not your own personnel or administration costs. An arbitrary flat fee for each email is therefore not justified.
Your checklist before sending a demand
- Check the contract, performance and acceptance where applicable.
- Establish the agreed payment deadline and actual due date.
- Check invoice receipt, partial payments and credit notes.
- Consider objections, payment extensions and rights to withhold payment.
- Check consumer status and the conditions for default.
- Document the claim, payment request and receipt clearly.
- Charge interest and costs only on a sound legal basis.
A simple payment demand does not suspend the limitation period. Seek legal assistance in good time if a claim is disputed or a limitation deadline is approaching.
Do not confuse invoicing rules with payment periods
VAT invoicing rules do not set a universal civil-law payment period. Section 14a UStG concerns additional invoicing duties in particular situations, not general special payment due dates.
Businesses must generally retain invoices for eight years under section 14b UStG, starting at the end of the year of issue; statutory extensions may apply. If you use the German VAT exemption scheme for small businesses (Kleinunternehmerregelung) under section 19 UStG, do not show VAT separately on those exempt transactions and include the required exemption statement (section 34a UStDV).
Frequently asked questions
Can I send a demand as soon as the payment deadline expires?
Generally yes, if the debt is actually due and enforceable. Check incoming payments and any objections first. There is no additional universal waiting period.
Must the heading say “Mahnung”?
No. What matters is a clear request for payment of a particular debt that is due.
Does invoicing software perform the legal assessment?
Motorica.io helps you organise invoices and payments. Whether default exists and which costs you can claim still depend on the contract and the individual circumstances.
Sources
This article explains German law and does not replace individual legal or tax advice.
- BGB § 271
- BGB § 271a
- BGB § 641
- BGB § 187
- BGB § 188
- BGB § 193
- BGB § 286
- BGB § 288
- BGB § 204
- UStG § 14a
- UStG § 14b
- UStDV § 34a
- BGH, III ZR 91/07
- Deutsche Bundesbank
- IHK Frankfurt am Main
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