Belgium is a small yet complex country, making the collection of unpaid invoices in Belgium a challenging task. TCM Belgium is the #1 benchmarked collection partner in Belgium for recovering unpaid invoices, assisting creditors in finding the best amicable or legal solution. Let’s first provide a brief explanation about Belgium and its cultural and legal challenges/advantages.
An Introduction to Brave Little Belgium
You may have heard the phrase ‘Belgian Solutions’. It perfectly captures the Belgian knack for creatively circumventing extensive regulations or solving everyday problems. Another national pastime includes passionately discussing the weather forecast and ordering a weekly serving of ‘French’ (but actually Belgian) fries.
Belgium is a complex society with three language communities (French, German, Dutch) and six parliaments. It likely holds the record for the highest number of ministers per capita. This language complexity manifests in all aspects of daily life. For instance, a train conductor was recently reprimanded for failing to greet passengers in the correct language order based on the region the train passed through. These language regulations are just as crucial when dealing with debtors!
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Legal Procedures
Despite (or thanks to?) the mentioned Belgian Solutions, Belgium has an extensive arsenal of legal procedures that must/can be followed depending on the nature and size of the unpaid invoice.
Justice of the Peace: B2C claims up to 5,000 EUR
Handles consumer claims up to 5,000 EUR. No appeals for claims under 2,000 EUR; higher amounts can be appealed to the Court of First Instance.
Court of First Instance: B2C claims above 5,000 EUR
Handles consumer claims over 5,000 EUR. Claims under this amount may be transferred to the Justice of the Peace.
Enterprise Court: B2B claims of any amount
Handles B2B disputes and other business matters, such as liquidations and intellectual property. Appeals are not allowed for claims under 2,500 EUR.
IOS Procedure: Undisputed B2B debts
An extrajudicial procedure for fast-tracking undisputed B2B claims. It allows creditors from several EU countries to obtain an enforceable title but can be contested by the debtor.
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Limitation periods
Although Belgium offers strong protection to debtors (especially consumers), it does has the advantage that invoices can be recovered for a longer period compared to other countries. For commercial claims, the standard limitation period is 10 years for contractual obligations and 5 years for non-contractual obligations (e.g., damage to third parties). However, there are some exceptions. For example:
– Invoices from schools, boarding schools: 1 year
– Periodic billing (i.e., monthly, annually): 5 years
– Public utilities: 5 years
– Interest on a debt: 5 years
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A Changing Legal Framework
Belgium’s legal framework is subject to frequent changes, driven by both domestic decisions and European regulations. Some recent key developments affecting the collection of unpaid invoices in Belgium include the introduction of Book XIX in the Economic Law Code and the upcoming obligation to use Peppol for electronic invoicing.
Book XIX in the Economic Law Code
This change impacts B2C debts only:
– Late payment interest and fees must be explicitly stated in the general terms and conditions, and your collection partner must receive an updated copy.
– A free reminder (sent via a durable medium) meeting specific criteria must be sent before charging costs and interest, with proof of dispatch and a copy for your collection partner.
Peppol
From January 1, 2026, it will be mandatory in Belgium to send invoices electronically via the Peppol network (Pan-European Public Procurement Online).
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Simple EU regulations
Despite the changing legal framework, Belgium benefits from being a member of the EU. TheEU is criticized for its extensive regulations, but sometimes these prove useful in providing quick clarity and eliminating lengthy procedures, which is equally necessary for healthy business relationships and a smooth collection of unpaid invoices.
– When there is ambiguity (in the general terms and conditions or in the absence of them) regarding the applicable law and the competent court in a dispute over a debt between two EU member states, the European Rome I and Brussels I-bis Regulations determine the applicable law and the competent court.
– The European Enforcement Order (EEB) removes the need for an exequatur procedure between EU member states. It simplifies and standardizes the enforcement of uncontested cross-border claims, allowing judgments in such cases to be easily recognized and enforced in another Member State.
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What Makes TCM Belgium Different?
A local collection partner is invaluable when recovering unpaid invoices in Belgium. They can guide you through the maze of complex regulations and a society with strict language rules. Whenever possible, an amicable solution is preferred to maintain commercial relationships and avoid legal costs and uncertainty.
Debt collection partner TCM Belgium stands out in the market through:
– Over 31 years of experience in collecting unpaid invoices, both amicably and legally, and a client portfolio exceeding 6,000 clients.
– On-site visits: A leading approach in personally engaging debtors through an in-house team of legal experts.
– Outstanding results through a swift and goal-oriented approach: A 93% success rate for B2B claims and an average resolution time of just 20 days.
– Transparency and convenience via digital optimization: Case initiation within 24 hours, secure access to your case via a user-friendly online platform, and immediate transfer of collected funds. Each client is assigned a dedicated point of contact.
– No cure, no fee: No results? No costs, and thus no financial risk!
– An average employee tenure of over 10 years: that loyalty and in-house knowledge is priceless these days.
– Partnerships with Belgium’s largest professional federations and accounting firms, resulting in extensive experience across all sectors.
With TCM Belgium, the collection of unpaid invoices in Belgium becomes a streamlined and efficient process, ensuring you receive the support and results you need. Do you have any questions about collecting unpaid invoices in Belgium? Feel free to contact TCM Belgium at s.dereze@tcm.be or call +32 (0)498 29 29 14.
