Unpaid Invoices in Belgium: Effective Debt Recovery Procedures

Unpaid invoices are one of the most common, and most stressful, problems Belgian entrepreneurs face. According to the statistics, around one invoice in four in Belgium is not paid within the agreed deadline, and the average payment delay exceeds 15 days. For an SME, repeated non-payment can threaten cash flow and even the survival of the business. This complete guide walks you step by step through every debt recovery procedure available in Belgium in 2026, from a simple friendly reminder to court action.

The legal framework for late payment in Belgium

The law of 2 August 2002 on late payment

The law of 2 August 2002 on combating late payment in commercial transactions (transposing EU Directive 2011/7/EU) is the fundamental text on the subject. It applies to B2B transactions (between businesses) and provides for:

• Default payment term: 30 days from receipt of the invoice (art. 4)
• Maximum contractual term: the parties can agree a longer term, but it cannot exceed 60 days unless otherwise justified and not abusive
• Automatic late interest: in the event of late payment, interest is automatically due, without prior formal notice (art. 5)
• Fixed recovery compensation: a minimum compensation of EUR 40 is due as of right (art. 6)

The late payment interest rate

The late payment interest rate for commercial transactions in Belgium is set every six months by FPS Finance. It corresponds to the ECB interest rate plus 8 percentage points.

For the first half of 2026, the late payment interest rate is around 12.50% (an indicative rate, to be checked on the FPS Finance website).

The law of 4 May 2023 on B2B relations

The law of 4 May 2023 on market practices and consumer protection in B2B relations strengthened protection for small businesses against unfair practices by larger companies, including unreasonable payment terms. Contractual clauses that are manifestly unbalanced can be annulled by the courts.

Phase 1: Friendly debt recovery

Friendly recovery should always be the first step for unpaid invoices. It preserves the business relationship and is far less costly than court proceedings.

Step 1: A reminder by phone or email

As soon as the payment deadline has passed, contact your client:

• Day 1 to day 7 after the due date: a first, courteous reminder by email or phone
• Check that the invoice was actually received and that there is no dispute over the goods or services
• Offer a payment schedule if the client has temporary difficulties

Sample reminder email:

Subject: Payment reminder - Invoice No. 2026-042

Dear Sir or Madam,

Unless we are mistaken, we have not yet received payment
of our invoice No. 2026-042 dated 15/02/2026 for an amount
of EUR 3,500.00 incl. VAT, which was due on 17/03/2026.

We would be grateful if you could settle this amount as
soon as possible to our account:
IBAN BE42 3100 1234 5678 - BIC BBRUBEBB

If payment has already been made, please disregard this
message.

Kind regards,
[Signature]

Step 2: A formal reminder letter

If the first reminder has no effect:

• Day 15 to day 20: send a formal reminder letter by post
• State the invoice number, the amount, the due date and the delay observed
• Note that late interest and recovery costs may be claimed
• Set a new payment deadline (usually 7 to 10 days)

Step 3: Formal notice of default

Formal notice of default (mise en demeure) is a formal legal act that marks the turning point between friendly recovery and court recovery.

Features of a formal notice of default:

• Sent by registered letter with acknowledgement of receipt
• Clearly states the amounts owed (principal + interest + costs)
• Sets a final payment deadline (usually 8 to 15 days)
• States that legal action will follow in the event of non-payment
• References the legal basis (the law of 2 August 2002, terms and conditions)

Calculating the amounts to claim:

Friendly debt collection agencies

You can hand friendly recovery over to a specialist agency. In Belgium, debt collection agencies are regulated by Book XIX of the Economic Law Code (CDE) (formerly the law of 20 December 2002).

Important rules:

• The collection agency must be registered with FPS Economy
• It cannot charge the debtor costs beyond what is provided for by law or the contract
• It must observe a 14-day waiting period after the formal notice of default before taking further steps (for B2C debts)
• Aggressive, misleading or unfair practices are prohibited

Cost: collection agencies generally work on a commission of 10-25% of the amount recovered, or a flat fee.

Phase 2: Court debt recovery

If friendly recovery fails, several court procedures are available in Belgium for recovering unpaid invoices.

Procedure 1: The uncontested debt recovery order (IOS)

The IOS procedure (Invordering van Onbetwiste Schulden – recovery of uncontested debts), introduced by the law of 19 October 2015, is a fast, out-of-court procedure for recovering uncontested B2B debts. It is often the most effective and least costly procedure.

Conditions:

• A B2B debt (between businesses registered with the CBE)
• An uncontested debt (the debtor does not dispute the amount)
• A debt that is certain, liquidated and due

Process:

1. The creditor's lawyer asks a bailiff (huissier de justice) to serve a payment demand on the debtor
2. The debtor has one month to pay, dispute the debt, or request a payment plan
3. If the debtor does not respond within the month, the bailiff draws up a certificate of non-contestation
4. This certificate is made enforceable by a judge and has the same force as a judgment

Costs:

• Bailiff's fees: based on the statutory scale (around EUR 200-500 depending on the amount)
• No court fees (no summons, no hearing)
• The debtor bears the cost of the procedure

Timeframe: around 5 to 8 weeks (against 6 to 18 months for a standard court procedure)

Procedure 2: A summons before the enterprise court

If the debt is disputed, or if the IOS procedure does not apply, you must bring the case before the enterprise court (formerly the commercial court) for B2B disputes.

Territorial jurisdiction:

• The court where the debtor is domiciled or has its registered office (general rule)
• The court of the place of performance of the obligation (if provided for in the contract)

Subject-matter jurisdiction:

• The justice of the peace for disputes up to EUR 5,000
• The enterprise court for B2B disputes above EUR 5,000
• The court of first instance for B2C disputes

Approximate cost of proceedings before the enterprise court:

The procedural compensation (art. 1022 of the Judicial Code) is a fixed amount that the losing party must pay to the winning party to cover legal fees:

Procedure 3: The European order for payment procedure

For cross-border debts within the EU, Regulation (EC) No. 1896/2006 provides for a European order for payment procedure. This procedure is useful if your debtor is in another EU country.

Procedure 4: Protective seizure

In an emergency, if you fear your debtor is arranging their own insolvency, you can request a protective seizure (saisie conservatoire, art. 1413 et seq. of the Judicial Code):

• Protective seizure of bank accounts: freezing the debtor's accounts
• Protective seizure of movable property: a bailiff draws up an inventory of the debtor's assets
• Protective seizure of debts: freezing sums owed to the debtor by third parties

A protective seizure is authorised by the seizures judge and is provisional: it must be confirmed by a judgment on the merits within three years.

Phase 3: Enforcing the judgment

This final phase lets you enforce payment of unpaid invoices through a bailiff.

The enforceable title

Once you have a judgment (or a certificate of non-contestation under the IOS procedure), you hold an enforceable title, which lets you have a bailiff carry out forced enforcement.

Enforcement seizure

The bailiff can carry out:

1. Seizure of movable property: seizing and auctioning the debtor's movable assets
2. Seizure of real estate: seizing and selling immovable property (a long and costly procedure)
3. Garnishment: seizing sums owed to the debtor by third parties (bank accounts, wages, trade debts)

The central seizure notices register

All seizure notices are centralised in the central register of seizure, assignment, delegation, collective debt settlement and protest notices, run by the National Chamber of Judicial Officers. This tool lets you check whether a debtor is already subject to other seizures.

Unpaid invoices: special cases

A debtor in bankruptcy or judicial reorganisation

If your debtor is declared bankrupt (Book XX of the CDE), you must:

1. File your claim with the bankruptcy trustee within the deadline set by the court (usually 30 days after publication in the Belgian Official Gazette)
2. Check whether your claim is preferential (unpaid seller's privilege, mortgage, pledge) or unsecured
3. Take part in creditors' meetings

In the case of judicial reorganisation (formerly concordat judiciaire, the former term for this procedure), the debtor can propose a reorganisation plan providing for payment terms or debt write-offs. Creditors vote on this plan.

An individual debtor: collective debt settlement

If your debtor is an over-indebted individual, they may qualify for a collective debt settlement procedure (art. 1675/2 et seq. of the Judicial Code). A debt mediator (a lawyer or bailiff) is appointed to draw up a repayment plan. Your chances of recovery are then limited.

Statute of limitations on debts

Be aware of the limitation periods:

Important: the limitation period is interrupted by a formal notice of default sent by registered letter (for a one-year period, only once), court proceedings, or the debtor acknowledging the debt.

The tax and VAT impact of unpaid invoices

Recovering VAT on irrecoverable debts

When a debt from unpaid invoices becomes definitively irrecoverable, you can recover the VAT originally paid by issuing a credit note (art. 77, VAT Code). The conditions are:

• The debt must be definitively lost (bankruptcy, the debtor's default after a recovery procedure)
• A credit note must be issued referring to the original invoice
• The credit note must be included in the VAT return

Tax deduction for doubtful debts

For income tax purposes, irrecoverable debts count as deductible business losses (art. 48, Income Tax Code 1992 (CIR 92)). For doubtful debts (not yet definitively lost), a write-down can be booked if it is justified by concrete evidence (unsuccessful reminders, bankruptcy, etc.).

Preventing unpaid invoices: 10 practical tips

1. Check your clients' creditworthiness before you contract with them. Check the Crossroads Bank for Enterprises (CBE) and databases such as Graydon, Companyweb or Trends Business Information.

2. Draw up solid terms and conditions, with late-payment penalty and fixed compensation clauses.

3. Ask for a deposit: 30-50% on order for new clients or large projects.

4. Invoice immediately: the longer you wait to invoice, the longer you will wait to be paid.

5. Use invoicing software with automatic reminders.

6. Diversify your client base: do not depend on a single large client.

7. Offer several payment methods: bank transfer, direct debit, online payment.

8. Set up factoring: sell your invoices to a factoring company (KBC Commercial Finance, BNP Paribas Fortis Factor, Belfius Commercial Finance), which advances you the amount and handles recovery.

9. Take out credit insurance: with Credendo, Euler Hermes, Coface or Atradius, to protect yourself against unpaid invoices.

10. Act fast: the longer you wait, the less chance you have of recovering your money. Send your first reminder the day after the due date.

Conclusion

Recovering unpaid invoices in Belgium is a structured process that runs from a friendly reminder to forced enforcement, via increasingly efficient court procedures such as the IOS. The key is to act quickly and systematically.

In 2026, digital tools and streamlined procedures such as the IOS let Belgian entrepreneurs recover their debts more effectively than before. That said, the best strategy remains prevention: well-drafted terms and conditions, rigorous tracking of due dates, and checking your clients' creditworthiness in advance will save you a great deal of trouble.

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This article was written by the Espero-Soft team for the blog dedicated to entrepreneurs in Belgium. For personalised advice, consult a lawyer or a bailiff.