A significant shift in Belgian public procurement is now upon us! As of January 1, 2025, the Royal Decree of August 12, 2024, amending payment deadline rules imposed on contracting authorities has come into force, introducing a strict 30-day payment processing deadline for most contracts. This impacts all public contracting authorities and contractors.
This change, driven by a ruling from the Court of Justice of the European Union, aims to align Belgium with EU Directive 2011/7/EU of 16 February 2011 on combating late payment in commercial transactions and promote fairer payment practices.
WHAT YOU NEED TO KNOW
Strict 30-day timeframe
The double deadline of 30 days for verification and 30 days for payment is now eliminated! Payments must be processed within a strict 30-day timeframe—no more extra time for verification.
Exceptions
While the 30-day rule is the standard, exceptions exist for specific situations (e.g., healthcare providers, specific tender). These exceptions have their own set of rules and conditions.
- General rule on derogation : Longer processing times (up to 60 days) are only possible if:
- The extended deadline is clearly stated in the tender documents;
- The reason is objectively justified by the tender’s nature;
- The total time doesn’t exceed 60 days;
- It’s not an abuse of the contractor’s rights.
- Healthcare providers derogation : Recognised healthcare providers have specific allowances, with limitations on verification and payment times, but with strict conditions to prevent misuse.
Monitoring
Public authorities must report on their payment practices to ensure accountability and transparency.
Benefits
- For contractors : Faster payments improve cash flow and enable smoother operations.
- For contracting authorities : Efficient processing demonstrates good governance and strengthens relationships with suppliers.
If you have any questions or need guidance, don’t hesitate to reach out to our public and administrative law experts: Manuela von Kuegelgen, Renaud van Melsen, Laura Grauer, or Alexia Faes, who would be happy to assist you.
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This newsletter is not a legal advice or a legal opinion. You should seek advice from a legal counsel of your choice before acting upon any of the information in this newsletter.
