Billing is one of the most important processes in business and has a direct impact on an organization’s cash flow. A billing system typically involves steps such as invoicing, providing supporting documents for payment, and receiving payments by check or money transfer. Even though this process is common, document preparation and management must be done with precision.

In this article, we outline the billing process in Thailand, from preparing documents and invoicing to tracking payments. We also discuss tips to help simplify the billing process.

What’s in this article?

• Billing in Thailand
  
• Preparing documents for invoicing
  
• What are the billing procedures in Thailand?
  
• How Stripe Billing can help
  

Billing in Thailand

Billing (also called “invoicing”) is the process a service provider or business uses to inform the customer of the agreed payment details. It is an important process that directly affects a business’s financial stability. This is true for both small and large businesses—they must have efficient billing systems to ensure smooth and continuous operation. Billing also helps reduce delays in payments, errors, and conflicts between business partners.

Thailand still widely uses paper documents and check payments. In addition, government agencies and large organizations often have stricter and more complex regulations. Therefore, business owners should understand the steps of the billing system to ensure smooth operations and reduce potential errors.

Preparing documents for invoicing

Preparing documents for invoicing—commonly known as “billing”—is an important process that ensures payments are systematic and verifiable. The main documents used are listed below:

Invoices

These are documents used to notify the customer of the amount to be paid for goods or services.

They should include the following details:

• Invoice number
  
• Document issue date
  
• Name, address, and tax identification number of business and customer
  
• List of products or services with details, such as quantity, units, price, and total price
  
• Total amount before tax, including value-added tax (VAT) (e.g., VAT 7%)
  
• Net total
  
• Payment terms (e.g., 30-day credit or pay now)
  
• Payment channel (e.g., bank transfer or check)
  

Customer purchase orders

This is a document issued by the customer to the business to express an intention to purchase goods or services. A purchase order should be attached to the invoice to help confirm that the purchase is in accordance with the agreement. The document should specify the following details:

• List of products or services the customer wants to purchase
  
• Quantity
  
• Unit price
  
• Total price
  
• Delivery date
  
• Payment terms (e.g., 30-day credit or pay now)
  
• Customer and business information
  

Delivery orders or work completion forms

This document confirms that goods or services have been delivered. It should include product or service details that match the invoice:

• Document number and date
  
• List of products or services provided
  
• Quantities and units
  
• The recipient’s signature and date of receipt
  
• Reference purchase order number (if any)
  

Tax invoices

VAT-registered operators must issue these documents to customers to inform them of the amount of VAT collected:

• Business name, address, and tax identification number
  
• Customer’s name and address (if a full tax invoice)
  
• Item number, VAT invoice, and date of tax invoice issue
  
• Details of the product or service
  
• Value of goods or services before tax
  
• Amount of VAT charged
  
• Total value of all items (including tax)
  

Other documents

These can include a withholding tax certificate (if applicable), a copy of the customer’s identification (ID) card, or a company certificate to show the business’s right to receive the money.

Document verification and sequencing should be clearly defined to facilitate easy review by the customer’s accounting department. This can reduce the chance of missing or returned documents. In addition, the business should attach a copy and keep the original in case of a dispute or investigation.

What are the billing procedures in Thailand?

The billing process depends on the nature of the business, operations, and agreements of each partner. Generally, it can be summarized into these main steps:

Agree on payment terms

The business and customer should agree on the price, payment terms (e.g. cash, 30-day credit), contract, deposit, late fees, and various other terms. Businesses should be specific with quotations and contracts to avoid disputes.

Schedule a billing date

The business should contact the customer or the customer’s accounting department to schedule an invoice date. Some customers might have invoice cycles, such as the 25th of every month. Once the date is set, all documents can be sent to the customer’s accounting or purchasing department.

Prepare the invoice documents

These should be prepared according to the details and procedures specified above:

• Invoice
  
• Customer purchase order
  
• Delivery order or work completion form
  
• Tax invoice
  
• Other documents, such as withholding tax certificate (if any)
  

Deliver documents

Next, the business should issue formal invoices, attach any additional billing documents, and deliver the documents to the customer by the appropriate or agreed delivery method.

Check and confirm receipt of documents

The customer will sign the document and date it to start the payment cycle. The customer should check the accuracy of the invoice and other documents in case there are any problems or information that needs to be corrected.

Track transactions (if required)

If payment is due and not received, the business should follow up by telephone, email, or formal letter of demand. Businesses should keep follow-up records in case of disputes, including the follow-up date, caller name, and response received. Interest can be charged in case of delay.

Receive payments and record accounts

The invoicing process is complete. The business receives the payment and records the transaction in the company’s accounting system to close the account. Once the customer has paid, the business should issue a receipt and keep the payment document as evidence for inspection and tax filing.

How Stripe Billing can help

Stripe Billing lets you bill and manage customers however you want—from simple recurring billing to usage-based billing and sales-negotiated contracts. Start accepting recurring payments globally in minutes—no code required—or build a custom integration using the API.

Stripe Billing can help you:

• Offer flexible pricing: Respond to user demand faster with flexible pricing models, including usage-based, tiered, flat-fee plus overage, and more. Support for coupons, free trials, prorations, and add-ons is built-in.
  
• Expand globally: Increase conversion by offering customers’ preferred payment methods. Stripe supports 100+ local payment methods and 135+ currencies.
  
• Increase revenue and reduce churn: Improve revenue capture and reduce involuntary churn with Smart Retries and recovery workflow automations. Stripe recovery tools helped users recover over $6.5 billion in revenue in 2024.
  
• Boost efficiency: Use Stripe’s modular tax, revenue reporting, and data tools to consolidate multiple revenue systems into one. Easily integrate with third-party software.
  

Learn more about Stripe Billing, or get started today.