Everything you need to know about statutory interest

On this page, we provide you with more information about statutory interest and its application. To facilitate the calculation of statutory (commercial) interest, we offer a handy tool to calculate the statutory (commercial) interest that may apply to outstanding claims.

What is statutory interest?

Statutory (commercial) interest is the interest established by law that can be levied on amounts that have not been settled after the expiration of the payment term. In the Netherlands, a distinction is made between two types of statutory interest: statutory interest for commercial transactions and statutory interest for non-commercial transactions.

• Statutory interest for commercial transactions applies to transactions between companies (B2B) or between companies and government agencies. This interest is intended to be able to claim a form of compensation if payment is not made on time.
  
  
• Statutory interest for non-commercial transactions applies to transactions where at least one party is a consumer. This interest is often lower than that for commercial transactions so as not to burden consumers too heavily. This interest is also intended to be able to claim a form of compensation if payment is not made on time.

How is statutory interest calculated?

The level of the statutory (commercial) interest is periodically determined by the Dutch government and can change in the interim. To calculate the interest due, you must have the following information: the amount of the outstanding balance, the applicable interest rate, and the period over which the interest may be calculated.

Frequently asked questions about statutory interest

View the answers below to the most frequently asked questions about paying statutory interest.

What is the definition of statutory interest?

Interest established by law that can be levied on amounts that have not been settled after the expiration of the payment term.

What types of interest are there?

Below we provide examples of different types of interest that can also be used in our module.

• Compound commercial interest: This refers to the compound interest applied to commercial transactions between companies or between companies and government agencies. It means that the interest is calculated periodically and added to the outstanding amount, resulting in interest being calculated on interest.
  
  
• Compound non-commercial interest: This is the compound interest applied to transactions where at least one party is a consumer. As with compound commercial interest, the interest is calculated periodically and added to the outstanding amount.
  
  
• Compound contractual interest: This refers to the compound interest set according to the terms of a contract. It entails that interest is calculated periodically and added to the outstanding amount based on the terms agreed upon between the parties.
  
  
• Simple commercial interest: This is the non-compound interest applied to commercial transactions between companies or between companies and government agencies. The interest is not added periodically to the outstanding amount, but is calculated and added to the amount due only once.
  
  
• Simple non-commercial interest: This refers to the non-compound interest applied to transactions where at least one party is a consumer. As with simple commercial interest, the interest is not added periodically to the outstanding amount, but is calculated and added to the amount due only once.
  
  
• Simple contractual interest: Refers to the interest agreed upon between parties in a contract which is not calculated and added to the outstanding amount periodically. Instead, this interest is calculated once and added to the amount due, without any further accumulation of interest on interest.

When does statutory interest for commercial transactions apply?

For transactions between companies (B2B) or between companies and government agencies.

What is the purpose of statutory interest for commercial transactions?

To ensure timely payments within the business market. Interest can also be seen as "compensation" for not paying the outstanding invoice on time.