חוק מוסר תשלומים לספקים, התשע"ז-2017Law of Payment to Suppliers, 2017 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Payment Terms to Suppliers Law, 2017 sets maximum payment dates for a supplier, for performing work, providing a service or selling an asset, as follows: Government ministries and state authorities – within 45 days from the date the invoice is delivered, or no later than 30 days from the end of the month in which the invoice was delivered, unless it concerns engineering construction works, in which case the maximum payment date is within 85 days from the date the invoice is delivered, or no later than 70 days from the end of the month in which the invoice was delivered. Local authorities – within 45 days from the end of the month in which the invoice was delivered, and if it concerns engineering construction works – within 80 days from the date the invoice is delivered. The law also includes a mechanism for handling cases where the source of funds for payment to the supplier is not the local authority. Bodies supported or funded by the state, such as institutions of higher education or bodies established by law – within 45 days from the end of the month in which the invoice was delivered, but they may, with the approval of the Director General, set a different payment date in the contract, provided this is required due to the special nature of the engagement or that it is not an exceptionally unfair date. Furthermore, the law provides that one year, or at most two years, from the date the law comes into effect, the provisions applicable to government ministries will apply to these bodies, meaning these bodies will be required to pay no later than 45 days from receipt of the invoice or no later than the end of the month plus 30 days, and these bodies will not be able to stipulate otherwise regarding these payment dates. However, due to the wide variety of such bodies and the inherent variation in their manner of operation and budgeting, the Minister of Finance, the Minister of Economy and Industry and the Prime Minister will be authorized, following consultations as set out in the law and with the committee's approval, to establish exceptions for various types of such bodies, and even for types of suppliers or transactions. Private businesses – within 45 days from the end of the month in which the invoice was delivered to them, but they may set a different payment date in the contract, provided this is required due to the special nature of the engagement or that it is not an exceptionally unfair date. The law also provides that consideration not paid by the maximum payment date will be paid to the supplier with linkage differentials and interest added, and after 30 days from that date, the consideration to the supplier will bear default interest.

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