Limitation Period for Unpaid Invoices in Thailand: Two Years or Five?

Short answer: A trader’s claim for the price of goods or work under Thai law generally expires after two years. If the customer bought the goods or services for its own business, such as resale or production, the period is five years. The period is interrupted by a written acknowledgment, part payment or filing suit.

The rule and the exception

CCC Section 193/34(1) sets a two-year period for traders and industrialists claiming for goods delivered, work performed or management of another’s business, including advances, unless done for the debtor’s own business. Claims within the exception run for five years under Section 193/33(5). Thai law calls this “prescription”; it works like a statute of limitations, but its effect must be raised by the defendant.

How Thai courts read “the debtor’s own business”

The Supreme Court looks at how the customer used what it bought. Plastic sheeting used in the buyers’ trade (Judgment No. 1956/2543), cement resold or mixed into ready-mix concrete (No. 1343/2551) and electricity used in a rice mill (No. 14887/2551) all attracted five years. These summaries come from database headnotes, not full judgments.

Interruption

Under CCC Section 193/14, prescription is interrupted where the debtor acknowledges the debt in writing, pays part of it or interest, provides security, or the creditor sues or refers the dispute to arbitration.

Practical points for foreign suppliers

• Track each invoice’s due date and diarise a two-year deadline.
• If unsure whether two or five years applies, plan around two.
• Ask for a signed acknowledgment of debt whenever the customer requests more time.

Consult a Thai Lawyer About Debt Limitation Periods and Unpaid Invoices

Are you concerned that your business may lose the right to recover unpaid invoices due to an approaching limitation period? Under Thai law, the applicable limitation period depends on the nature of the transaction, the contractual arrangements, and the circumstances of each case.

Pattara Law Firm provides legal assistance to Thai and international businesses in reviewing outstanding commercial debts, assessing applicable limitation periods, examining contracts and supporting evidence, preparing formal demand letters, negotiating settlements, and pursuing debt recovery proceedings in Thailand.

Seeking legal advice early can help your business understand its available options and take appropriate steps before important legal deadlines expire.

• Telephone: +66 99 249 5989
• LINE Official: @patt
• WhatsApp: +66 99 249 5989
• Email: info@thailandlawyer.com

Protect your business interests before time runs out. Contact our legal team to discuss your unpaid invoices and debt recovery options in Thailand.