NEW NATIONAL OBSERVATORY ON PRIVATE LATE PAYMENT

The Council of Ministers approved, on April 30, Royal Decree 439/2024, of April 30, amending the regulation of the National Council for SMEs and creating the National Observatory on Private Late Payment, which was published in the Official State Gazette (BOE) on May 1.

What functions will this Observatory have?

Among its functions are the systematic monitoring and evaluation of late payment trends, the preparation of the annual report, the development of codes of good practice, the formulation of action proposals, monitoring of EU guidelines on this matter, the preparation, approval, and publication of a list of non-compliant companies, acting as an advisory body, and the adoption of dispute resolution mechanisms.

What should companies bear in mind when applying for or justifying aid subject to the General Subsidies Act?

On an annual basis, the Observatory will prepare a report on the payment deadline situation, which will be presented to and approved by the National Council for SMEs.

It will also prepare an annual list of non-compliant companies, as of the reference date of December 31 of the previous year, based on complete invoice payment information provided by the Spanish Tax Agency (AEAT) through electronic invoicing.

This list of non-compliant companies will include all private companies that have failed to meet the payment deadlines set out in the sixth final provision of Law 18/2022, of September 28.

Why is it important not to be on that list?

In September 2022, Law 18/2022, of September 28, on the Creation and Growth of Companies, was published in the Official State Gazette (BOE). This law amended the General Subsidies Act, introducing two important changes:

• To be eligible for public aid, an entity must comply with the supplier payment deadlines set out in the Late Payment Act (30 calendar days, which may be extended to 60 calendar days if agreed between the parties).

• The payment deadlines for investments/expenses included in the justification of a grant must also comply with the payment periods set out in the Late Payment Act (30 calendar days, which may be extended to 60 calendar days if agreed between the parties).

Therefore, companies that have been granted aid subject to the General Subsidies Act and are still pending justification, as well as those considering applying for new aid, should bear in mind that they must carefully ensure compliance with supplier payment deadlines.

When will this Royal Decree come into force?

The Royal Decree will come into force on May 2; however, the National Observatory on Private Late Payment has a two-month period from that date to be established, meaning before July 2.

Although the Royal Decree comes into force on May 2, the list of private companies that have failed to meet payment deadlines cannot be compiled until the electronic invoicing system has been implemented in the private sector.

When will the electronic invoicing system be implemented in the private sector?

According to Royal Decree 1007/2023, of December 5, it will apply from December 2024 for private companies with annual revenue exceeding €8 million. For all other companies, it will apply from December 2025.

16/05/2024