How to pay for AWS invoices in Thailand: Explanation of payment methods and billing services

When using Amazon Web Services (AWS) through a Thai subsidiary, in addition to credit card payments, you can consider bank transfers to AWS or invoice payments through AWS partners. However, even if you use the Thailand region, invoices will not automatically be issued from within Thailand.

When choosing a payment method, you need to check not only the issuer of the invoice and the payment currency, but also the Thai VAT registration number, whether a tax invoice can be obtained, whether international remittances are possible, and how costs will be shared with the head office in Japan.

This article explains how to pay AWS usage fees by invoice in Thailand, and the differences between direct AWS contracts and using an invoice agency. It also outlines points to check before signing a contract, taking into account the accounting and tax procedures of a Thai subsidiary.

Two ways to pay AWS usage fees by invoice in Thailand

For a Thai subsidiary to process AWS usage fees via invoice, it must either contract directly with AWS or use an AWS partner's billing service.

With a direct contract, you will make a bank transfer to a designated account based on the invoice issued by AWS. If you use an invoicing service, you will receive an invoice from the AWS partner and pay according to the contract terms. Since the invoice source, currency, bank transfer destination, and services provided will differ, choose the method that best suits your company's accounting system.

I contract directly with AWS and pay by bank transfer.

To use invoice payment with a direct contract with AWS, you must apply to AWS Support for a change in payment terms. AWS will review your application based on your usage history and creditworthiness, and once approved, you will send the payment according to the currency, bank account details, and payment deadline specified on the invoice.

When transferring funds from a Thai subsidiary to an overseas bank account, transfer fees and exchange rate fluctuations are also included in the payment costs. Therefore, the comparison should include not only AWS usage fees, but also bank fees and the burden of internal transfer procedures.

With a direct contract, your company will handle invoice processing, payment remittances, and inquiries to AWS. If it's difficult for your Thai subsidiary to handle everything on its own, it's easier to streamline the process by designating a department, including your Japanese headquarters, to be responsible for billing management and inquiries.

Use AWS Partner's billing service.

With AWS Partner billing services, the partner collects AWS usage fees and issues invoices to the contracting company. The company does not send payments directly to AWS, but makes payments based on the agreement with the partner.

Billing currency, bank transfer details, payment deadlines, and fees vary depending on the service. If you require billing in Thai baht, bank transfers to a Thai domestic account, or the issuance of a tax invoice, please inquire about the availability of each item before signing a contract.

Depending on the service, you may also receive support in Japanese, consolidated billing for multiple accounts, and usage reports. By entrusting AWS monitoring and operations to the same partner, you can centralize billing management and technical support. When selecting a partner, compare not only the price but also the scope of support and account transfer conditions at contract termination.

Using the Thailand region does not necessarily mean that you will be billed within Thailand.

An AWS Region is the geographical area where AWS resources are located. On the other hand, billing and tax treatment are determined based on the contractual and tax information of your AWS account.

Therefore, even if you use the AWS Asia Pacific (Thailand) region, invoices may not necessarily be issued by a company located in Thailand. When determining the billing source, refer to the information in the AWS Billing and Cost Management console, not the region.

The AWS region and billing source are determined separately.

An AWS region indicates where resources such as Amazon EC2 and Amazon RDS are located. By selecting the Thailand region, you can place your resources on AWS infrastructure within Thailand.

On the other hand, the AWS entity that issues the invoice is called the Seller of Record. You can find the Seller of Record in the AWS Billing and Cost Management console under "Payment preferences" or "Tax settings".

Billing and tax treatment are determined based on the location and tax information registered in your AWS account, not the region. The primary information referenced is the corporate address and Tax Registration Number (TRN).

Resource allocation and billing are managed under different criteria. It is important to note that simply using the Thailand region does not automatically mean that billing will be handled by a Thai company or that payments will be made via domestic bank transfer.

Billing and tax considerations when directly contracting with AWS in Thailand

If a Thai subsidiary contracts directly with AWS, the billing details will vary depending on whether or not they are registered for VAT and the tax settings of their AWS account. It is important to understand the AWS billing specifications separately from the tax processing required in Thailand.

Setting up an AWS account alone does not complete the tax process. You will need to coordinate with local accounting staff and tax professionals regarding the necessary documents for journal entries and tax filings.

Setting up your Thai VAT registration number in your AWS account

Companies registered for VAT in Thailand must register their Tax Registration Number (TRN) in the "Tax settings" section of the AWS Billing and Cost Management console. The company name and business address in Thailand must also match the information registered in the company's registration and tax records.

AWS determines the location of each account based on information such as TRN, billing address, and contact address. Because discrepancies in registered information may result in the application of the expected tax classification, the information is verified before the first invoice is issued.

VAT treatment differs depending on whether or not you are registered for VAT.

AWS will add a 7% VAT to eligible services provided to customers who are not registered for VAT in Thailand. On the other hand, AWS is informing VAT-registered businesses that register a valid Thai TRN before billing that they will not be charged VAT.

Even if AWS does not charge VAT, the Thai subsidiary may still be required to file and pay taxes. The treatment of digital services purchased from foreign businesses will be determined based on local tax rules.

You may not receive a tax invoice from AWS for Thailand.

AWS is registered in Thailand as a non-resident company established outside of Thailand, and is therefore registered for VAT in Thailand. AWS explains that under this registration category, they are not obligated to issue a valid tax invoice under Thai tax law.

Therefore, invoices issued by AWS may not be treated the same as tax invoices issued by Thai domestic businesses. Supporting documents required for expense reporting and VAT declarations should be prepared according to your company's accounting procedures.

If you require a tax invoice issued within Thailand, AWS partner billing services are also an option. Since issuance availability and the issuing authority vary by service, be sure to confirm whether the document is suitable for your company's tax processing before signing a contract.

Multiple accounts require checking the inheritance settings for tax information.

AWS Organizations allows you to enable "Tax settings inheritance," which applies the tax information of the management account to member accounts. This inheritance includes company name, tax address, and TRN.

Even if accounts for a Thai subsidiary and a Japanese head office are managed by the same organization, the same tax information cannot necessarily be applied to all of them. Accounts with different contracting parties or locations require separate tax settings.

For accounts that do not utilize inheritance, check the "Tax settings" individually. When adding a new account, also verify that the tax information is correctly reflected before the first invoice is issued.

Benefits of using a billing agency within Thailand

Using a billing service provided by an AWS partner in Thailand may allow you to process AWS usage fees in accordance with local accounting flows. Key comparison points include billing currency, issuance of tax invoices, bank transfer destinations, and currency handling.

The scope of support varies depending on the AWS partner. Compare the billing terms and support details before signing a contract.

Check if payment can be made in Thai baht.

If the service supports billing in Thai baht, the local subsidiary can process AWS usage fees in accordance with its internal base currency. This reduces the effort required to convert foreign currency billing amounts each month, making it easier to incorporate into budget management and accounting processes.

The billing currency isn't the only factor to compare. The applicable exchange rate, conversion date, fees, and payment deadline also affect the billed amount. Understand the calculation method and compare it to the total cost of a direct contract with AWS.

Check if you can receive a tax invoice within Thailand.

Thai subsidiaries may be required to provide a valid tax invoice for accounting and tax purposes within Thailand.

AWS has stated that it is registered as a non-resident in Thailand and is not obligated to issue tax invoices in the same format as Thai domestic businesses. On the other hand, AWS partners in Thailand offer services to issue invoices and VAT tax invoices for local subsidiaries.

When choosing a billing service provider, you should carefully examine not only the document names, but also the issuing entity, VAT information, and how the company name and address are reflected. You should also consult with local accounting staff or tax professionals to determine if the service is suitable for your company's tax processing.

Reduce the burden of international money transfers and exchange rate fluctuations.

Using a billing service that handles transfers to domestic Thai accounts can reduce the banking procedures and transfer fees associated with international money transfers. For contracts where the billing amount is fixed in Thai baht, it also makes it easier to manage exchange rate fluctuations up to the time of payment.

However, this doesn't necessarily mean that exchange rate costs themselves will be eliminated. Conversion rates and fees set by AWS partners may be included in the billing amount.

When comparing this to a direct contract, we will consider not only AWS usage fees, but also transfer fees, exchange rates, billing agency fees, and the workload on the accounting department.

Which party will handle the contract and payment: the Japanese head office or the Thai subsidiary?

The legal entity responsible for AWS contracts and payments cannot be determined solely by the user department. The decision must take into account the accounting structure of the Thai subsidiary, the IT controls of the Japanese head office, the billing currency, and tax procedures.

If the Thai subsidiary enters into the contract, it becomes easier to manage the usage fees as part of the local budget. On the other hand, if the Japanese head office manages AWS accounts at multiple locations, billing and cost management can be centralized. After clearly defining the roles of the contracting party, account administrator, user department, and payer, choose the system that best suits your company.

The Thai subsidiary will handle the contract and payment.

This method involves the Thai subsidiary contracting an AWS account and paying the usage fees. Since AWS costs related to local operations can be included in the Thai budget, it becomes easier to track departmental revenue and expenses and project costs.

When signing a contract, we will coordinate with the accounting department regarding the billing currency, bank transfer details, and whether or not a tax invoice can be obtained. If contracting directly with AWS, the Thai subsidiary will handle international remittances and registration of tax information. If using a billing agency, we will check whether they support billing in Thai baht and bank transfers to domestic accounts.

If access control and security are handled solely by the Thai side, it may become difficult for the Japanese headquarters to grasp usage patterns. Establishing clear guidelines in advance for information to be shared with headquarters, changes requiring approval, and communication channels in case of failures or billing overruns will prevent this fragmentation of management.

The Japanese head office handles the contracts and manages the costs for multiple locations.

This method involves consolidating systems from the Thai branch into an AWS account managed by the Japanese headquarters, allowing for a single payment of usage fees. For companies using AWS in multiple countries or locations, this allows for the centralization of contracts, billing, and security standards at headquarters.

AWS Organizations allows you to consolidate billing across multiple accounts and track usage costs for your Thailand office on an account or tag basis. This also makes it easier to detect budget overruns and standardize cost allocation rules.

When allocating funds paid by the Japanese head office to AWS to the Thai subsidiary, internal transaction and tax processing procedures must be addressed. The accounting and tax personnel in both countries should agree in advance on the required documentation and allocation methods.

Even if contracts and billing are centralized at headquarters, headquarters does not need to handle local operations alone. Roles can be divided, with headquarters managing accounts and security standards, while the Thai subsidiary or local support company handles daily monitoring and initial response.

Comparing direct AWS contracts with billing agencies.

Direct AWS contracts and billing agencies differ in terms of billing source, payment terms, contact information, and available support. When using AWS for a Thai subsidiary, you should compare not only whether invoice payment is available, but also currency, bank transfer details, tax invoices, and operational support.

Direct contracts are suitable for companies that maintain a contractual relationship with AWS and can manage billing and payments themselves. Using AWS Organizations, you can consolidate usage fees from multiple accounts into a single management account and streamline payments.

For companies that want to align with local accounting flows or consolidate billing and operations into a single point of contact, billing outsourcing is a viable option. Choose an AWS partner that meets your specific requirements, such as billing in Thai baht, direct deposit into Thai domestic accounts, and issuing tax invoices.

Ultimately, the decision is based not only on AWS usage fees and charges, but also on exchange rates, transfer fees, payment deadlines, support scope, and account transfer conditions at contract termination. Choosing a contract that suits both accounting and AWS operations will reduce the burden of payments and management.

Serverworks and IIJ Group support AWS implementation and billing management in Thailand.

Serverworks and the IIJ Group offer "IIJ Managed Cloud for AWS Powered by Serverworks" to Japanese and local companies in Thailand. In addition to designing, building, and operating AWS environments, it also supports management across the Japanese headquarters and Thai subsidiaries.

Serverworks provides AWS design and technical support, as well as AWS billing services that support invoice payments in Japanese yen. The IIJ Group is responsible for implementation and operation, taking into account the local network and IT environment in Thailand.

By collaborating, our two companies can provide AWS technical support and on-site support in Thailand under a single system. Please feel free to consult with us regarding everything from selecting direct contracts and billing agents to account management, cost management, monitoring, and operation.