Reminders and late-payment interest · Austria & Germany
Payment reminder or formal demand: difference, deadlines and templates for Germany and Austria
Payment reminder or formal demand? The difference lies in the effect, not the name. Deadlines, tone and templates for Germany and Austria.
In brief
Legally, there is no difference between a payment reminder (Zahlungserinnerung) and a formal demand (Mahnung), in either Germany or Austria. What counts is the content: if a letter sent after the due date clearly demands payment, it is a formal demand, even if it is headed “payment reminder”. In Germany this first demand normally triggers default. In Austria the customer is usually already in default once the payment date has passed; no demand is needed for that.
Payment reminder and formal demand in sequence
- Payment reminderShortly after the due date, friendly, with invoice number and amount.
- Formal demandAfter about two weeks, factual, with interest, flat fee and a date.
- HandoverIf the demand also goes unanswered, a collection agency takes over.
Is there a legal difference?
No. In neither country does the law distinguish between a payment reminder and a formal demand. Both legal systems only ask whether you have clearly called on your customer to pay a claim that is due. Whether the letter is headed “payment reminder”, “formal demand” or “outstanding invoice” is irrelevant.
The difference is one of tone. The payment reminder is the friendly first stage for the customer who has overlooked the invoice. The formal demand is the second, firmer stage for the customer who still does not pay after a reminder. Both can legally be a formal demand. In Germany, a payment reminder with invoice number, amount and a request for payment already meets all the requirements of a formal demand.
One limit applies in both countries: you can only send a demand once the claim is due. In Germany, a demand sent before the due date is ineffective and does not become effective later either. So send the payment reminder after the payment term has expired, not the day before.
What does the first message do in Germany and in Austria?
This is where the countries differ markedly. The table shows the key points for invoices to businesses and to private customers.
| Question | Germany | Austria |
|---|---|---|
| When is the customer in default? | On receipt of the first demand after the due date; without a demand if a date was agreed in the contract or 30 days after the due date and receipt of the invoice, for private customers only if the invoice points out this consequence | As soon as they miss the payment date set by contract or law; if no date has been agreed, an invoice with a payment deadline or a demand is enough |
| Late-payment interest between businesses | 9 percentage points above the base rate, so 10.52 percent since 1 July 2026 | 9.2 percentage points above the base rate, so 10.73 percent in the second half of 2026 |
| Late-payment interest for private customers | 5 percentage points above the base rate, so 6.52 percent since 1 July 2026 | 4 percent a year |
| Flat fee between businesses | 40 euros | 40 euros |
| Cost of your own demand | Not recoverable for the demand that first triggers default | Reminder fees (Mahnspesen) as collection costs if reasonable and the customer is at fault; between businesses covered by the 40-euro flat fee |
| Does the demand stop limitation? | No | No |
Austria has a special feature regarding the interest rate: the base rate on the first day of the half-year is decisive. The base rate rose to 2.03 percent on 16 September 2026. For default in the current half-year, however, the basis remains 1.53 percent and the rate therefore 10.73 percent. Between businesses, the higher rate also only applies if your customer is responsible for the delay; otherwise it is 4 percent.
The consequence in practice: in Germany the first payment reminder is often the step that triggers default. So send it quickly and unambiguously. In Austria, default and interest normally already run from the day after the payment term; the reminder there is above all an offer to the customer to settle the matter without further steps.
When do you send what? Deadlines and tone
Neither country has statutory reminder deadlines. Nor is there any obligation to send three reminders. This sequence has proven itself:
| Stage | Timing | Tone | Content |
|---|---|---|---|
| Payment reminder | A few days after the payment term expires | Friendly, without reproach | Invoice, amount, due date, request for payment, note “if already paid” |
| Formal demand | Around two weeks later | Factual and firm | Reference to default, interest and flat fee, specific payment date, announced next step |
| Handover | After the date in the formal demand | No further message of your own | Claim with all documents to a collection agency |
In most cases you can skip a third, “final” demand. Customers who do not react to a reminder and a demand rarely react differently to a third. Only announce in the demand what you will then actually do.
How to proceed: build the payment reminder into your accounting routine, for example five days after each payment term, and the formal demand 14 days later. A fixed rhythm works better than any sharp tone.
Templates for Germany
Both templates assume an invoice to a business. For private customers, delete the flat fee and use 5 instead of 9 percentage points.
Payment reminder
Subject: Payment reminder for invoice R-2026-118 of 1 September 2026
Dear Sir or Madam,
our invoice R-2026-118 for 1,190.00 euros was due on 15 September 2026. To date we have not been able to identify any payment. Please transfer the amount without delay to our account IBAN DE… quoting the invoice number.
If you have already paid, please disregard this letter. If you have any questions about the invoice, you can reach us at …
Kind regards
Formal demand
Subject: Formal demand for invoice R-2026-118 of 1 September 2026
Dear Sir or Madam,
we have received neither payment nor a reply to our payment reminder of 21 September 2026. You have been in default since 22 September 2026. Outstanding are the invoice amount of 1,190.00 euros, the statutory flat fee of 40.00 euros and late-payment interest of 9 percentage points above the base rate from 23 September 2026.
Please transfer 1,230.00 euros plus interest by 13 October 2026. If payment is not received by then, we will pass the claim to a collection agency without further notice.
Kind regards
Detailed guidance on contents, deadlines and sending in Germany is given in the guide Writing a payment reminder: template and deadlines.
Templates for Austria
These templates also assume an invoice to a business. For private customers, claim 4 percent interest and reasonable reminder fees instead of the flat fee.
Payment reminder
Subject: Payment reminder for invoice R-2026-118 of 1 September 2026
Dear Sir or Madam,
our invoice R-2026-118 for 1,190.00 euros was due on 15 September 2026. Unfortunately, we have not yet been able to identify any payment. We kindly request that you transfer the amount by 30 September 2026 to our account (IBAN AT…).
If your payment has crossed with this letter, please disregard it.
Kind regards
Formal demand
Subject: Formal demand for invoice R-2026-118 of 1 September 2026
Dear Sir or Madam,
despite our payment reminder of 21 September 2026, our invoice remains unpaid. You have been in default of payment since 16 September 2026. We request that you transfer the following amounts by 14 October 2026: invoice amount 1,190.00 euros, flat fee for collection costs 40.00 euros and late-payment interest of 9.2 percentage points above the base rate since 16 September 2026.
If payment has not been received by then, we will pass the claim to a collection agency.
Kind regards
How many reminders are usual in Austria and what happens after the last one is explained in the guide Payment reminders in Austria.
Example: A graphic designer invoices a business 1,190 euros on 1 September 2026, “payable by 15 September 2026”. Nothing had been agreed on this beforehand. The customer does not pay; on 21 September she sends the payment reminder by email, and it is received on 22 September. If Austrian law governs the contract, the customer has been in default since 16 September: an invoice with a payment deadline is enough there, and default begins when the deadline expires. By 31 October that is 46 days and 16.09 euros of interest (1,190 × 10.73 % × 46 ÷ 365), plus the 40-euro flat fee, 1,246.09 euros in total. If German law applies, default only starts on receipt of the reminder on 22 September, because a date that appears only on the invoice does not count as agreed there. By 31 October that is 39 days and 13.38 euros of interest (1,190 × 10.52 % × 39 ÷ 365), plus the 40-euro flat fee, 1,243.38 euros in total. The same letter, two legal systems, a different start of default.
What belongs in every payment reminder and formal demand?
Regardless of the country, every letter needs the same details so that the customer can pay and you can later prove default:
- Invoice number and invoice date
- Amount actually outstanding after partial payments and credit notes
- Due date
- A clear request for payment, in the formal demand with a specific date
- Bank details and payment reference
- Contact person for queries
- In the formal demand: late-payment interest, for businesses the flat fee, the announced next step
Leave out threats you will not carry out and fees with no legal basis. With the payment reminder generator you can create a payment reminder, formal demand, final demand or email text for Germany or Austria, without registering, as Word or PDF. The late-payment interest calculator works out the interest for your case for both countries.
By email or by post?
Neither country prescribes a particular form. A payment reminder or formal demand by email is effective. The problem is proof: if the customer denies receipt, you have to prove it. In Germany the start of default depends on this.
For the payment reminder, an email to the address the customer otherwise uses to correspond with you is usually enough. For the formal demand, proof is advisable: a registered letter, a read receipt or a reply from the customer. Save every message sent, with its date, in the customer file.
When is it worth handing over to a collection agency?
As soon as the formal demand also goes unanswered. Your customer is then in default in both countries, the claim is due, and every further message of your own only costs time. If the customer has raised specific objections, however, resolve them first. No reputable collection agency takes on disputed claims.
incaseof.law is licensed in Austria and registered in Germany. You hand the claim over online in the client portal: register, enter debtor, amount and due date, upload the invoice, payment reminder and formal demand. We accept due, undisputed claims with documented payment default, with no minimum volume. The case team then decides on the reminder stages. You receive 100 percent of the principal claim; the defaulting debtor bears the default costs within the legal limits. No costs from incaseof.law, even if the debtor doesn’t pay. Court fees and, in Austria, MANZ transmission fees only arise once you approve court proceedings. Recovery and duration are not guaranteed. You will find the process under Submit a claim.
Frequently asked questions
Do I have to send a payment reminder before a formal demand?
No. The payment reminder is a matter of style, not an obligation. In Germany, the first message after the due date can already be the demand that triggers default. In Austria, the customer is usually in default anyway from the missed payment date.
Can I charge fees for a payment reminder?
In Germany, not for the letter that first triggers default. In Austria, reasonable reminder fees are recoverable if the customer is at fault for the default. Between businesses, the 40-euro flat fee is the simpler route in both countries.
How long should I wait after a formal demand?
There is no statutory waiting period. 7 to 14 days are usual, which you write into the demand as a specific date. After that you decide on the next step.
Is a payment reminder by WhatsApp or text message effective?
No form is prescribed, so a short message can also be effective. The difficulty is proving that it reached the right recipient. For the formal demand, email or letter is the better choice, with proof of receipt.
Do German rules apply if my customer is based in Austria?
Not automatically. What matters is the law governing the contract, not just where the customer is based. Check your terms of contract and select the appropriate country in the generator.
Sources and scope
- German Civil Code, § 286 BGB: default of the debtor
- Austrian Civil Code, § 1334 ABGB: delay in payment
- Austrian Commercial Code, § 456 UGB: default interest between businesses
- Austrian National Bank: base rate and reference rate
- WKO: payment default by a business partner, FAQs (German)
Sources checked 7 October 2026. Primary legal sources are in German. Examples are our own simplified illustrations. This English guide concerns Austria & Germany; it does not describe English law.
Related topic: When a customer does not pay.
Demand ignored? Hand the claim over
If your formal demand also goes unanswered, hand the claim over online in the client portal, for customers in Germany and Austria.
Create a payment reminderNo costs from incaseof.law, even if the debtor doesn’t pay. Court fees and, in Austria, MANZ transmission fees only arise once you approve court proceedings.
About the author
Stephan Holzbach
Stephan Holzbach is co-author of “Warten aufs Geld”, a study of receivables held by Austrian companies. At incaseof.law he writes guides for creditors who want unpaid invoices settled sooner.
The sources for this article are listed under Sources and scope. This article is general information and does not replace advice on an individual case.