Your obligations and rights explained when you are faced with an invoice prescription.
An invoice. What is it exactly?
Before we get into the question of your obligations and rights when you receive a late invoice, let's agree on what must be included in it in order for it to be considered a proper invoice.
The VAT Act lists the items that must appear on a valid invoice. There are 5 key points to consider :
- The identities of the provider and the client must be clearly indicated. The company identification number is used for this purpose.
- The addresses of the parties involved are also used to identify stakeholders. This can be the address of the company's registered office and the customer's home.
- The purpose of the supply (a good or service) is properly detailed. The quantity if they are goods or the nature of the services provided.
- Obviously, the pricing must be on the invoice. An amount excluding tax and an amount including all taxes indicate the amount to be paid. VAT rules apply.
- Finally, the deadlines and the date of settlement must be clearly specified.
OK but it's a 6 year old invoice...
Wondering if you should pay for it? Let us assume that it is justified. The good has been delivered, the service has been delivered.
The limitation period for the payment of invoices is governed by the Code of Obligations. For an invoice that is 6 years old, the nature of the good or service must be analyzed.
As a general rule, a limitation period of 10 years applies. You are therefore required to pay your bill. However, there are cases where this period is shortened to 5 years.
Here they are :
- Rents
- Support
- Food supplies
- The actions of the craftsmen
- The services of doctors, lawyers, law agents and notaries
If the services or goods covered by the invoice received late come from this list, you are entitled not to pay for it because the limitation period has expired. You can inform the creditor in this regard by referring to the Code of Obligations.
Please note the principle of abuse of rights.
Imagine invoking a cash flow problem preventing you from paying the bill by promising that your financial situation will improve and allow you to pay the debt, eventually.
In this case, the creditor may not have asserted what is due within the legal period. In this case, you cannot invoke the limitation period to avoid payment. This would be considered an abuse of rights.
Heard. The invoice is valid and the statute of limitations has not expired. Can they charge me late payment interest?
The Act does not provide for interest on late payments, but creditors are free to apply them.
This interest, often referred to as a reminder fee, is generally in the range of 5%.
They can only be applied after the payment period has expired. As explained, the payment deadlines and date must be included on the invoice in question.
- OK, but in this case, the reminder fee is more than 5%. Is it legal ?
A company cannot arbitrarily decide on the amount of recall fees without detailing the calculation in their terms and conditions.
The principle of proportionality also applies.
As long as the general terms and conditions include an explanation of the possible costs and this is not disproportionate, the amount can legally exceed 5%.
Of course, you can dispute the amount in question. The creditor will then have to justify the damage suffered.
OK but the amount of the invoice is wrong. Worse, the bill is not justified !
Let's review some of the cases where you can dispute an invoice :
You receive an invoice for CHF 1,000 but the initial estimate shows an estimated amount of CHF 500.
You have the right to refuse to pay. Although a margin of increase is acceptable following a quote, this increase should not exceed 10%.
This is why your garage will contact you following potential additional costs. You must provide your prior consent.
- I receive an invoice for goods not ordered.
If you have not ordered anything, you have the right to refuse the goods received and not to pay the associated invoice. So don't be fooled into feeling obligated to honor an invoice after receiving unordered goods.
- I have an invoice for premium rate services that are not included in my subscription.
If these services are not included in your contract with the provider or operator, you have the right to object to them. Of course, honor the fees associated with your subscription, your contract, but dispute the additional costs not provided for in the agreement.
And the repayment of my loan... Can I dispute an invoice if I can't pay ?
The Consumer Credit Act contains all the rules relating to your personal loan.
If the invoices received are clearly detailed, refer to the loan agreement signed with the lending bank, include the correct amounts and are received before the statute of limitations, you are obliged to honour them.
Of course, your personal situation must be considered, but it is your responsibility to inform your creditor promptly of any difficulties encountered in order to try to find a new repayment format. Don't hang around.
Milenia
Milenia is the leading financing platform in Switzerland. Together with its banking and credit partners, offering credit, insurance and data cleaning solutions is the best if you want to finance your personal projects or protect yourself.
Sound advice, professional follow-up of your application file, qualitative analysis of your supporting documents, proposal of the best rates on the market and transparent and benevolent communication... This is the minimum you can expect from your credit partner, Milenia in this case.
That's why we constantly inform our clients about their obligations and their rights.
Browse our blog to learn and stay up to date on the latest trends in the world of credit and finance.
Lire la suite
