Late payment and credit terms on Hong Kong invoices
Set payment terms on the invoice and in the contract. There is no tax rule that sets them for you.
Payment terms in Hong Kong are usually set by contract between the two parties. The invoice should repeat them. Common terms are 14, 30 or 60 days. We did not find an official fixed late-payment rate that applies to every business invoice. For a legal claim, take advice from a lawyer.
- Write the due date on the invoice, not only '30 days'.
- State any late fee or interest in the contract before you issue the invoice.
- Keep the order, delivery proof and invoice together.
- Send a dated written reminder before any legal step.
How it works
Agree the terms in a quote or contract.
Issue the invoice with a due date and bank details.
Note when it is paid.
Send a reminder after the due date and keep a copy.
Take legal advice on further steps.
Legal framework
- Inland Revenue Ordinance (Cap. 112), section 51C — business records.
- Judiciary of Hong Kong: Small Claims Tribunal (judiciary.hk).
Frequently asked questions
Can I charge interest on late invoices?
Only if agreed in the contract or allowed by law. Ask a lawyer.
Does 4invoices send payment reminders?
No. 4invoices creates invoices with a tax rate per line, supports any currency with an exchange rate, and downloads a PDF. It does not connect to the Inland Revenue Department, file returns or keep legally validated archives. The 6-month free trial needs no card.
How long should I keep unpaid invoices?
At least 7 years, like other business records.