Understanding the Electronic Invoicing Model in Thailand

The electronic invoicing system in Thailand, known as the "e-Tax System," covers electronic documents such as electronic invoices or e-Tax Invoices, electronic receipts or e-Receipts, and debit and credit notes. This model was implemented by the Thailand Revenue Department (RD) with the aim of streamlining tax reporting and reducing tax evasion while enhancing administrative efficiency.

The model revolves around generating and presenting electronic fiscal invoices and receipts following defined rules and adhering to international standards and recommendations from the Electronic Transactions Development Agency under the Ministry of Digital Economy and Society (ETDA).

All entities and individuals subject to VAT can create, issue, and store electronic invoices in electronic format.

Characteristics of Electronic Invoices and Receipts in Thailand

Electronic invoicing in Thailand has been voluntary since 2012. Given its non-mandatory nature, the consent of the buyer is required to issue/send electronic invoices.

To issue electronic invoices, companies must obtain an electronic certificate issued by the Thailand Revenue Department.

Companies issue electronic invoices through software or systems approved by the Revenue Department.

Data must be transmitted to the RD in XML format within 15 days of the following fiscal month.

Electronic invoices must be electronically signed.

Documents must be stored for a period of 5 years using mechanisms ensuring the integrity and authenticity of the original document. Companies must ensure they have adequate systems to retain and retrieve these invoices in case of a tax audit.

Types of Electronic Documents

For companies selling services:

• Invoice:  issued to the buyer on the day the service order is placed.
• VAT invoice or receipt:  issued to the buyer on the day of payment

For companies selling products:

If the buyer does not have credit terms:

• VAT invoice or receipt: for buyers who are taxable entities or individuals.
• Receipt:  for end consumers.

If the buyer has credit terms:

• Invoice or VAT invoice:  issued to the buyer on the day of purchase.
• Receipt:  issued to the buyer on the day of payment.
   

What Information Should Electronic Invoices Contain?

1. Type of invoice prominently displayed.
2. Name, address, and tax identification number of the taxpayer for VAT purposes issuing the fiscal invoice.
3. Name and address of the buyer of the goods or service.
4. Invoice serial number.
5. Description, type, category, quantity, and value of goods or services.
6. Amount of value-added tax calculated on the value of goods or services.
7. Date of issuance.

EDICOM Solution for Electronic Invoicing in Thailand

If your company needs to implement electronic invoicing in Thailand, EDICOM's global electronic invoicing solution can assist in automating and integrating the process.

The EDICOM platform collects necessary tax data and performs data validation before generating the Standard XML 3-2560 file and PDF/A-3.

Then, the required electronic signature is applied, and through secure communication protocols, the EDICOM platform forwards the data to the RD.

Once the invoice is validated by the RD, the platform obtains both the XML and PDF and can automate the invoice's delivery to the final recipient.

Finally, electronic documents can be stored in the EDICOM certified electronic storage module under strict security measures.

In summary, electronic invoicing in Thailand is a crucial component of the country's tax system designed to enhance efficiency and transparency in tax reporting for businesses.

Context of Electronic Invoicing in Thailand

In 2016, the Thai government introduced a national initiative called "Thailand 4.0." This policy aims to achieve two long-term objectives: transforming Thailand into a "digital economy" and ultimately becoming an "advanced economy" by 2032.

This national program involves the implementation of an electronic tax system, which includes two electronic documents: invoices and receipts. The electronic tax system will affect all commercial operations in Thailand.

In 2017, the Thai RD regulated the use of these electronic documents, requiring any taxpayer adopting the electronic system to notify electronic invoices to the Thai tax authority. Both B2B and B2C transactions are covered by the regulation. All VAT-registered suppliers can generate electronic invoices and receipts and send them to the final customer.