Law on deadlines for settlement of financaial liabilities in commercial transactions

Registration invoices in comercial transactions

According to provisions of the Law on amendments to the Law on deadlines for settlement of financaial liabilities in commercial transactions, from 01 March 2018 the creditors shall be obliged to register in the Central Registry of Invoices issued invoices and other payment requests in commercial transactions in which public sector entities are debtors, before their delivering to debtors.

The subject to editing of the Law on deadlines for settlement of financaial liabilities in commercial transactions was expanded by adopted amendments, according to the new paragraph 2 of Article 1 of the Law on deadlines for settlement of financaial liabilities in commercial transactions, which reads:

’’This Law shall additionally regulate the registration of invoices and other requests for payments issued by the creditors in commercial transactions between the public sector and the economic operators, i.e. between the public sector operators, in which the public sector operators are debtors.’’

Also by adopted amendments of the Law on deadlines for settlement of financaial liabilities in commercial transactions has been established the Central Register of Invoices.

According to the provisions of Article 2 point 9 of the Law on deadlines for settlement of financaial liabilities in commercial transactions the Central Register of Invoices shall be a system (a database) which is established and maintained by the Ministry of Finance – Treasury Administration, in which invoices and other requests for payments issued by the creditors in commercial transactions between the public sector and economic operators, i.e. between the public sector operators, in which the public sector operators are debtors, shall be registered.

Registration of invoices and other requests for payment in the Central Registry of Invoices

By the provisions of Articles 4a and 4b of the the Law on deadlines for settlement of financaial liabilities in commercial transactions which applied from 01 March 2018, the manner and procedure for registration of invoices and other requests for payment issued in commercial transactions in which public sector entities are debtors, in the Central Registry of Invoices were regulated in detail.

Creditors shall be obliged to register in the Central Registry of Invoices issued invoices and other payment requests in commercial transactions in which public sector entities are debtors, before their delivering to debtors.

Registration of invoices and other requests for payment in the central register of invoices shall be made by entering the data from the invoice or other request for payment into the information system of the Treasury Administration.

The information system of the Treasury Department registers the entered data from the invoice or other request for payment in the central registry of invoices and assigns to that invoice or other request for payment, a unique identification number.

The creditors shall be obliged to submit the registered invoices or other requests for payment to the debtors within three business days from the date of registration, with instructions for payment of the invoice or other request for payment.

The minister responsible for finance affairs shall regulate closely the manner and procedure for registering invoices or other requests for payment as well as the manner of keeping and the contents of the central registry of invoices.

Debtors pay off their financial obligations in respect of invoices and other requests for payment, only if they are properly registered in the Central Registry of Invoices, which shall be determined by checking in that register.

The settlement of monetary obligations debtors – public sector entities perform in the usual time limits prescribed by the Law on deadlines for settlement of financaial liabilities in commercial transactions.

Supervision of the implementation of the Law on deadlines for settlement of financaial liabilities in commercial transactions

Supervision of the implementation of the Law on deadlines for settlement of financaial liabilities in commercial transactions between the public sector and business entities in commercial transactions in which public sector entities are debtors, as well as between public sector entities, is carried out by the Ministry of Finance – the Budget Inspection Department (hereinafter: the Budget Inspection Department).

In order to carry out the supervision the Budget Inspection Department shall take over data on outstanding liabilities of public enterprises from the information system of the Treasury Administration.

The budget inspection shall have access to all data of the Central Register of Invoices necessary for the implementation of the supervision as well as for the performance of other legally defined functions of the inspection control.

The minister responsible for financial affairs shall regulate the manner and procedure for conducting the supervision as well as the manner and procedure for taking the data by special acts.

Penality provisions

By the provisions of Article 12 of the Law on deadlines for settlement of financaial liabilities in commercial transactions two new paragraph has been added, which stipulating the misdemeanors and misdemeanors’s penalties not only for debtors – public sector entities from commercial transactions, but also for the creditors of such transactions.

It is prescribed that the legal person or legal entity or a public sector entity, if it do not register issued invoices and other requests for payment in the Central Registry of Invoices shall be punished for a misdemeanor with a fine of 100,000 to 2,000,000 dinars.

In addition, it is stipulated that the responsible person in the public sector, where public sector entity which is managed by him settle a financial obligation by invoices and other requests for payment, which are not registered in the Central Registry of invoices shall be punished for a misdemeanor with a fine of 5,000 to 150,000 dinars.

Read more:
Debt collection »
Factoring contract »

Leave a Reply

Your email address will not be published. Required fields are marked *