The Late Payment Regulation proposal – bringing fairness to business transactions

The European Commission released on 12 September 2023 the Late Payment Regulation (LPR), a legislative proposal to tackle late payments in commercial transactions in Europe. It aims to:

• bring fairness into commercial transactions
• increase supply chains and SME’s resilience
• foster a more widespread use of digitalisation
• improve financial literary of entrepreneurs

This document provides a high-level summary of the main provisions and explores the impact on Small and Medium Enterprises (SMEs). The proposal will have a fundamental impact on businesses and affect many SMEs and small practitioner accountants, who should be aware of the proposed changes. Accountants will play a key role in helping SMEs be prepared – and to prepare their own accountancy practice if it falls under the proposal’s scope.