Late Fee Invoice for Canada

Late Fee Invoice Template for Canada

A Late Fee Invoice is a formal financial document used in Canadian jurisdictions to charge additional fees on overdue payments. It complies with Canadian federal and provincial regulations regarding interest rates, consumer protection, and debt collection practices. The document details the original unpaid amount, the calculation of late fees according to agreed terms or statutory limits, applicable taxes, and clear payment instructions. It serves as both a collection tool and a legal record of the outstanding debt and associated charges.

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What is a Late Fee Invoice?

The Late Fee Invoice is essential for businesses operating in Canada to maintain effective accounts receivable management and ensure compliance with federal and provincial regulations. This document is typically issued when payment for goods or services remains unpaid beyond the agreed-upon due date. It must comply with the Interest Act, Criminal Code interest rate limitations, and applicable provincial consumer protection laws. The Late Fee Invoice should clearly state the original amount owed, the calculation method for late fees, the time period covered, and include all necessary payment instructions. It serves as an important tool for businesses to recover costs associated with delayed payments while maintaining professional relationships with clients.

What sections should be included in a Late Fee Invoice?

1. Invoice Header: Company details, invoice number, date, and recipient information

2. Original Invoice Reference: Reference to the original unpaid invoice(s) including invoice numbers, dates, and original due dates

3. Outstanding Amount: Clear statement of the original unpaid amount

4. Late Fee Calculation: Detailed breakdown of how the late fee was calculated, including the rate applied and time period

5. Total Amount Due: Clear statement of total amount including original amount and late fees

6. Payment Instructions: Details of how and when payment should be made, including acceptable payment methods and banking details

7. Contact Information: Details of who to contact with any questions or concerns about the invoice

What sections are optional to include in a Late Fee Invoice?

1. Payment History: Include when there have been partial payments or multiple payment attempts

2. Interest Calculation Details: Include when complex interest calculations are involved or when required by law

3. Tax Implications: Include when late fees are subject to GST/HST or other tax considerations

4. Payment Plan Options: Include when offering structured payment alternatives for settling the outstanding amount

5. Legal Notice: Include when this is a final notice or when legal action may be pending

6. Previous Communications: Include when referencing prior notifications or payment requests

What schedules should be included in a Late Fee Invoice?

1. Schedule A - Detailed Fee Calculation: Detailed breakdown of late fee calculations, especially for multiple invoices or complex interest rates

2. Schedule B - Payment History: Chronological list of all payments received and remaining balances

3. Schedule C - Original Invoice Copies: Copies of the original unpaid invoices referenced in the late fee invoice

4. Appendix 1 - Interest Rate Documentation: Documentation supporting the applied interest rate and its compliance with relevant laws

5. Appendix 2 - Communication Log: Record of previous payment requests and communications regarding the outstanding amount

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Invoice Form

Sector

Sales

Cost

Free to use
Relevant Industries

Retail

Professional Services

Manufacturing

Construction

Technology

Healthcare

Education

Real Estate

Financial Services

Telecommunications

Utilities

Transportation

Wholesale Distribution

Commercial Property Management

Business Services

Relevant Teams

Accounts Receivable

Finance

Accounting

Credit Control

Collections

Treasury

Billing

Revenue Management

Legal

Customer Service

Relevant Roles

Accounts Receivable Manager

Credit Controller

Financial Controller

Billing Coordinator

Collections Specialist

Finance Manager

Accounting Manager

Credit Manager

Treasury Manager

Financial Administrator

Accounts Manager

Billing Specialist

Revenue Analyst

Finance Director

Chief Financial Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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