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You may pass on collection costs and (statutory) interest to a customer who pays late, but only after the payment term has expired and you have sent a reminder — for consumers, with a 14-day letter. The collection costs are legally capped via a sliding scale (rising from 15% on the first 2,500 euros), with a minimum of 40 euros. You may not charge costs other than collection and interest.
You incur collection costs to collect unpaid invoices: phone calls, letters, and staff time. It would be unfair to bear these costs yourself while the customer has not paid, so you may pass them on, in addition to the invoice amount. You may also charge statutory interest — subject to conditions.
When are you allowed to pass on collection costs?
Not just like that. The payment deadline must have passed and you must have sent a reminder. For consumers, you need a 14-day notice : the consumer is given another 14 days to pay and avoid costs, and in it you must already state that and how much collection costs you will charge. For businesses, you do not need to announce this in advance, but it is good practice — and a useful tool for pressure.
How high can the collection costs be?
Collection costs must be reasonable and are legally capped via a sliding scale, calculated on the outstanding amount:
- 15% on the first 2,500 euros;
- 10% on the next 2,500 euros;
- 5% on the next 5,000 euros;
- 1% on the next 190,000 euros;
- 0.5% on the amount above that.
If the amount falls below 40 euros, you may increase it to 40 euros. You may always charge less. In the case of multiple outstanding invoices, you calculate the collection costs on the total amount.
Interest, and what you may not charge
In addition to collection costs, you may charge interest for the period that the invoice remains unpaid. State that you are charging interest, for example on the invoice or in the reminder. If you have agreed on interest in your general terms and conditions , that contractual interest applies; otherwise, the statutory interest.
You may not pass on costs other than collection costs and interest — so no additional reminder or administrative costs on top of that. A collection agency may charge VAT, but only if the creditor is not subject to VAT themselves.
Frequently Asked Questions
Am I always allowed to charge collection costs?
Only if the payment term has expired and you have sent a reminder. For consumers, a 14-day letter is mandatory in which you announce the collection costs.
How much collection fee am I allowed to charge?
Maximum according to the statutory scale (starting at 15% on the first 2,500 euros, decreasing), with a minimum of 40 euros. For multiple invoices, calculate the total.
Am I allowed to charge extra costs in addition to interest and collection costs?
No. You may not charge other costs, such as additional reminder or administrative costs, on top of the collection costs and interest.
Help with debt collection and terms and conditions
The legal experts at MKB Juristen ensure that your demand letters, terms and conditions, and collection procedures are correct. View our expertise in contract law or schedule an intake meeting .
