Challenging invoices on time as a bunisess: why and how?

Properly managing invoices is essential for businesses. Not only do they affect cash flow, but failing to challenge a received invoice can have significant consequences.

More specifically, an invoice that is not challenged in time is presumed to be accepted.

This blog highlights the importance of challenging an invoice in a timely manner and explains how businesses can do so effectively.

Why is it important to challenge an invoice?

The principle is simple for businesses: they must challenge invoices on time. Otherwise, failing to do so can be interpreted as acceptance of the invoice and the services provided.

But what does "challenging on time" mean? While the law generally does not set a specific deadline for challenging an invoice, there are several points of reference:

• First, your supplier’s general terms and conditions may specify a deadline. If you have accepted these (explicitly or, for example, by previously paying other invoices from the same supplier), you are required to challenge the invoice within this timeframe.

• Second, in the absence of a deadline in accepted general terms and conditions, the situation is less clear. The deadline then varies depending on the circumstances and is determined by the nature of the contract, industry practices, prior payment habits between the parties, etc. A challenge period of one week is generally considered reasonable, while a month is often too long.

How to properly challenge a received invoice?

Challenging an invoice requires diligence above all. The following steps can help businesses lay a solid foundation for an effective challenge:

1. Carefully review the invoice:
   • Check if the goods or services delivered match what was agreed upon;
   • Verify the price, quantities, and other important terms.

2. Respond within a short timeframe.

3. Challenge in writing:
   • Preferably use a registered letter or an email with a delivery receipt;
   • Clearly specify: some text
     • The invoice number and date;
     • The reasons for the challenge (e.g., incorrect quantities or prices, missing deliveries, or other defects);
     • Any supporting documents, such as copies of contracts or delivery notes, to substantiate the objection.

4. Communicate professionally: avoid emotional or unfounded statements.

5. Keep all communications: ensure you retain copies of all relevant documents, such as the invoice, proof of sending your challenge, and any responses from the supplier.

Legal implications of challenging invoices

Filing a challenge allows a business to avoid disputes over the invoice or to secure a stronger legal position. Belgian law also provides for the possibility of counter-evidence. A supplier, for instance, may attempt to demonstrate that the challenge is unfounded by providing evidence of proper delivery or prior agreement on the invoice terms.

A late or insufficiently substantiated challenge can lead to an invoice between businesses being considered sufficient proof of agreement and performance. This underscores the need for a well-organized administration and rigorous follow-up of received invoices.

In conclusion: Be proactive

Businesses must not only be proactive in challenging invoices but also in preventing such disputes. In addition to challenging invoices on time, it is advisable to take preventive measures:

• Clear agreements: ensure clear contractual agreements regarding prices, deliveries, and billing terms.

• Strict administration: a well-organized system helps verify and promptly track invoices.

Contact us if you need assistance drafting your own general billing terms, an invoice or challenge template, or other common business documents.