Unpaid Invoices by a Debtor Based in Poland

In business, the issue of unpaid invoices is a common challenge, especially when the debtor resides in a different country than the creditor. A debtor based in Poland can be either a company (e.g., a limited partnership, a limited liability company, or a joint-stock company) or an individual, which affects how the creditor proceeds in case the debtor does not pay the due invoice.

Below, we present the most important information regarding actions against debtors in Poland in case of unpaid invoices.

What does it mean that an invoice is due?

Although Polish law does not define the term “due,” it is generally accepted that a claim becomes due when the creditor can effectively demand satisfaction from the debtor (as stated by the Supreme Court in the ruling of February 12, 1991, case No. III CRN 500/90). An invoice becomes due when the payment term stated on the document expires. From this moment, the creditor has the right to demand payment from the debtor in Poland. In Poland, if no payment term is specified on the invoice, a standard term of 30 days from the invoice issue date is applied.

It is essential to distinguish between the due date and the payment date since the due date indicates the earliest moment when the creditor can demand payment, and the debtor is obliged to pay. In contrast, the payment date is the deadline by which the debtor does not fall into delay (see: Supreme Court judgment of March 12, 2002, case No. IV CKN 862/00).

It is important to remember that the due date of a claim is closely linked to the statute of limitations. According to the general rule in Article 120 § 1 of the Civil Code, the statute of limitations begins on the day the claim becomes due.

The Difference Between a VAT Invoice and a Proforma Invoice

A VAT invoice is an official accounting document that confirms the sale of goods or services. It serves as the basis for tax settlements for both the seller and the buyer. It indicates the amount to be paid and contains VAT information that must be settled with the tax office. In contrast, a proforma invoice is not an accounting document and does not have tax implications. It is merely a business offer or a preview of a future VAT invoice. It presents the terms of the transaction but does not obligate the buyer to make a payment based on it. A VAT invoice is issued after the goods or services are delivered, whereas the proforma invoice serves as information before the transaction.

A person who does not pay a proforma invoice is not considered a debtor, and no legal action can be taken to demand the settlement of a proforma invoice.

When Should You Request Payment from the Debtor?

The request for payment should be made after the payment term stated on the invoice has expired. It is best to send the request via email, SMS, or in writing, ensuring that evidence of the request exists in case of legal proceedings against the Polish debtor. We discourage sending requests over the phone.

The request should specify a new, final payment deadline, usually between 3 to 14 days, allowing the debtor time to act. The request for payment should be made as soon as possible after the payment deadline, given the running statute of limitations, which allows the debtor to evade payment. Time plays a crucial role in pursuing claims, and creditors should also engage in debt collection activities. It is worth knowing that some claims expire quickly, such as transport claims, which expire after 12 months, and some even after 6 months.

Who is a Debtor in Poland?

A debtor in Poland can be either an individual, running a business or being a consumer, or a legal entity such as a company (e.g., a limited liability company, a joint-stock company). In practice, any entity that fails to settle its liabilities within the specified term is considered a debtor.

How to Deal with a Debtor?

If a debtor in Poland fails to pay, the first step is to try to resolve the matter amicably. Mediation can be considered, as it may help reach an agreement. Mediation is a voluntary process in which both parties, with the help of a mediator, seek a settlement.

However, if mediation fails, legal action may be necessary. In Poland, it is possible to expedite debt recovery through the so-called e-court, i.e., the Electronic Writ-of-Payment Proceedings. This is a convenient method, allowing for quick and relatively cheap issuance of a payment order without the need for personal court attendance.

Enforcement Order vs. Enforceable Title

To initiate a bailiff’s execution against a debtor in Poland, it is necessary to obtain an enforceable title. An enforceable title is an enforceable document (e.g., a court judgment, payment order, notarial settlement) equipped with an enforcement clause, authorizing the initiation of enforcement by a bailiff.

What Does a Bailiff in Poland Do?

A bailiff in Poland is a public official who carries out court enforcement on behalf of the creditor. Based on the enforceable title, the bailiff may take various actions, such as seizing the debtor’s wages, bank account funds, movable or immovable property. The bailiff may also auction the seized assets to satisfy the creditor’s claims.

Liability of Board Members of a Limited Liability Company

In the event of the insolvency of a limited liability company in Poland, the liability for the company’s debts can be transferred to its board members. Under Polish law, a creditor may seek satisfaction from the personal assets of the board members if the company is unable to pay its debts. This solution makes enforcement in Poland more effective, giving creditors a better chance of recovering their claims.

Lawyer Assistance Against a Debtor in Poland

In cases involving debtors, quick action is crucial. The longer the intervention is delayed, the harder it becomes to recover the debts. Proper actions, from amicable negotiations to legal proceedings and bailiff enforcement, provide real chances of successfully recovering debt in Poland.

Lawyers from the SOS Legal Law Firm have extensive experience in cases involving unpaid invoices and debt recovery. The firm effectively represents both entrepreneurs and individuals in mediation, legal proceedings, and enforcement actions. Thanks to their knowledge of Polish law and efficient action, SOS Legal helps clients quickly recover debts.

For example, in one case handled by the firm, mediation led to a settlement, and the debtor paid the amount within a few days. In another case, thanks to expedited proceedings before the e-court, the firm obtained a payment order within 30 days of filing the lawsuit, significantly speeding up the enforcement process.

When dealing with debts, it is essential not to delay – contacting a lawyer in Poland will help you recover your claims quickly and effectively.

CONTACT US FOR MORE INFORMATION

E-mail: [email protected]

Mobile WhatsApp 24/7: + 48 668 841 990

SOS-Legal-Law-Firm

Lawyer in Poland

unpaid invoices, debtor based in Poland, Polish debtor, VAT invoice, proforma invoice, statute of limitations, debt recovery in Poland, payment request in Poland, mediation in Poland, bailiff enforcement in Poland, e-court in Poland, legal assistance in Poland, debt collection in Poland, board member liability in Poland, SOS Legal Law Firm, unpaid invoices Poland, business debts