A Late Fee Invoice is essential for businesses operating in the Philippines when dealing with overdue payments from clients or customers. This document is typically issued when an original invoice remains unpaid beyond its due date, and the creditor wishes to exercise their right to charge additional fees as permitted under Philippine law. The document must comply with local regulations, including the Civil Code of the Philippines and the Truth in Lending Act, which govern the charging of late fees and interest. It should be used when there is a clear contractual basis for charging late fees, either through original agreement terms or standard business practices. The Late Fee Invoice must include specific components such as the original invoice reference, detailed calculation of late fees, complete payment instructions, and all required tax information. It serves as both a collection tool and a legal document that may be used in future dispute resolution.

1. Invoice Header: Contains invoice number, date, and VAT registration details if applicable

2. Billing Information: Complete details of both the billing party and the client, including registered business names, addresses, and tax identification numbers

3. Original Invoice Reference: Details of the original unpaid invoice, including invoice number, date, and amount

4. Late Fee Calculation: Breakdown of the late fee calculation, including the number of days overdue and the applicable rate

5. Payment Details: Total amount due (original + late fees) and accepted payment methods

6. Payment Instructions: Bank account details or other payment channel information

7. Legal Notice: Standard text regarding the legal basis for the late fee charge under Philippine law