How is payment time calculated for PTRS?

Quick answer

For an invoice, payment time is generally the shorter period between the invoice issue date and payment date, or the invoice receipt date and payment date.

What does this mean?

The calculation includes both the starting date and the payment date. For Recipient Created Tax Invoices, payment time runs from the RCTI issue date to the payment date. Where there is no invoice or other document demanding payment, payment time is calculated from the date the payment obligation commenced, which may be the date of supply. Payment time is expressed in calendar days and cannot be less than zero.

Practical point

The invoice receipt date can materially affect reported payment time, but only where that date is properly captured. The worked example distinguishes invoice issue date, invoice receipt date and payment date for this reason.

Other ways people ask this

• How many days does PTRS say an invoice took to pay?
• Which dates are used to calculate payment time?
• Does PTRS calculate payment time from the invoice date or receipt date?
• Are payment times calculated using calendar days?

Official sources

• Payment Times Reporting Guidance Materials
  Method to calculate payment times
  Paragraphs: 166, 167, 168, 169 · Page: 42-43
• Worked Example – Standard Payment Times Report
  Glossary
  Reference: Payment Time

Related guidance

• What is a partial payment for PTRS?
• What is a trade credit arrangement?
• Are disputed payments included in PTRS?

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