Bord Bia is committed to making every effort to pay its suppliers promptly. In this regard suppliers can help by ensuring that they provide correct invoices, a valid Bord Bia Purchase Order Number, accurate bank account details and by ensuring that their Tax Clearance status with the Irish Revenue Commissioners is up to date.
In the case of all public sector contracts of a value of €10,000 (inclusive of VAT) or more within any 12-month period, the contractor (and agent or sub-contractor as appropriate) will be required to produce either a valid tax clearance certificate or a C2 certificate. This is a mandatory requirement. Full details on tax clearance procedures may be found on the Revenue Commissioners website.
Payment of invoices by Bord Bia is governed by the Prompt Payment of Accounts Act, 1997 as amended by the European Communities (Late Payment in Commercial Transactions) (S.I. No. 580 of 2012). The Regulations, which apply equally to the public and private sectors, provide an automatic entitlement to interest and compensation if payment for commercial transactions is late.
Bord Bia considers an invoice received only when it is received by Accounts Payable, Finance, quoting a valid Bord Bia Purchase Order number. Interest is calculated in respect of the period starting on the date after the due date and ending on the date when payment is made.
Interest must be paid in respect of the period beginning on the date after the due date of payment and ending on the date on which the payment is received by the supplier. The interest payment cannot be waived by the supplier.
Bord Bia has ten working days to advise suppliers in writing of any queries and/or defects with the invoice that prevent payment being made. Following acceptance by Bord Bia of the corrected invoice, Bord Bia will endeavour to issue payment within 15 days.
The legislation does not oblige payment to be made to a supplier who has failed or refused to comply with a request to produce a tax clearance certificate and it expressly extends the statutory time limit for payment where there are delays in furnishing a tax clearance certificate. Also the Act does not affect the deduction of withholding tax from any payment to a supplier.
15-Day Payment Requirement, July 2011
The Government extended the non-statutory requirement applicable to Central Government Departments to all public bodies from July 2011, to reduce the payment period by Public Bodies to their suppliers from 30 to 15 days. Every effort, consistent with proper financial procedures, is being made to ensure that all suppliers are paid within this timeframe.
Prompt Payment Returns