Glossary · Austria and Germany
Late-payment lump sum
The late-payment lump sum is a statutory flat amount for recovery expenses in certain commercial situations. The commonly cited EUR 40 is not a general surcharge on every unpaid invoice or a fee for each reminder stage.
Distinguish the concepts
Distinguish it from default interest and other evidenced costs. Eligibility and offset rules depend on jurisdiction. A software default should not simply be copied into every balance statement. Legal entitlement to an item also does not establish that it can actually be recovered.
Jurisdiction and scope
Austria’s UGB provides a EUR 40 lump sum for the commercial monetary claims within its scope. Germany provides it for a payment claim when the debtor in default is not a consumer. In Germany it must be offset against damages owed insofar as those damages consist of legal-recovery expenses. Improper double recovery must be avoided.
Illustrative business example
A German business lists EUR 40 alongside full collection costs. It checks which costs are actually owed and how the lump sum must be credited. For several invoices, it records the relevant claims and default facts rather than deriving the number of lump sums from the number of reminders sent.
Common questions
Does each reminder create another lump sum?
The number of reminders is not an independent basis for repeated lump sums. The statutory entitlement determines the position.
Can it be added to collection costs?
Only with the relevant conditions and offset rules. German law expressly addresses overlap with legal-recovery expenses.
Does it apply to consumer debts?
The commercial rules explained here cannot be transferred generally to consumer claims. Check the parties’ status first.
Related topics
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