Time to collect an invoice chile
This delay is a major disruption, not only for personal and professional reasons, since expenses have to be assumed on a monthly basis in both fields, but also business activity suffers, the liquidity of these professionals is reduced, and, as a consequence, consumption and investment are compressed.
For this reason and to alleviate this lack of liquidity, the Executive proposed a series of alternatives, such as cash VAT, which has not been as successful as expected, and they have even reported that, together with the Late Payment Law, they are “well-intentioned measures, but they do not work”. For this reason, it is more necessary than ever to find a root solution that involves shortening deadlines and pressuring for the payment of suppliers to become a reality. For example, Associations in defense of the rights of the self-employed demand the creation of a 20% surcharge for all those persons or administrations that do not comply with the Law.
In short, it is a question of avoiding unpleasantness and having a collection forecast and being clear at the time of formalizing the contract where we can be informed of the average collection period to avoid surprises later on.
What are the payment terms
In this graph you can see how long it takes on average local entities to pay their suppliers. Negative values mean that the entity has paid its suppliers below the 30-day deadline.
Autonomous Communities and Local Entities that do not pay their suppliers within the established maximum term are obliged to report the resources that they are going to dedicate monthly to the payment of suppliers and adopt the necessary measures of expenditure, income or management of collections and payments to reduce their PMP. In the event of continued non-compliance, the State will be responsible for the invoices, withholding them from the financing system of the affected territorial administration.
Law 21.131 payment 30 days
The digitization and automation of processes can mean a relevant change in the average collection period of your company. At the moment, the PMC does not seem to be decreasing at the national level, on the contrary, but this costs a lot of money to companies (in 2018, it reached 1,791 million euros). In your favor, there are tools to remedy it and avoid non-payment. So, the next time you are asked, “How long does it take you to register invoices?”, your answer will be, “Exactly, what I agreed with my client”.
Invoice payment term in Argentina
Reports the law that establishes the payment of the balance of invoices within thirty days (counted from the receipt of the invoice) for sales and services. The initial term to pay invoices is 60 days and will be in force until the end of March 2020. After that, the 30 days will be applied.
Invoices for sales, services rendered, or those that the law assimilates to such operations. It is stipulated that the seller or service provider must record, in the original of the invoice and in the copy, the payment status, the price or remuneration and the modalities in which the “solution of the unpaid balance” (what remains to be paid), if any, and the payment term will be resolved.
The remaining balance, contained in the invoice, must be paid effectively within a maximum period of thirty calendar days from receipt of the invoice, a rule that will be applied gradually.
Whatever the term agreed upon by the parties, clauses or stipulations that attempt to unduly delay the payment of the invoice to the seller or service provider shall not produce any effect whatsoever. In particular, clauses or stipulations which: