D-VAT & SBT System in Thailand: What Businesses Must Know

Did you know every business in Thailand must transition to the new D-VAT & SBT System in Thailand: What Businesses Must Know by September 1, 2025 with all registrations, tax filings, and payments going fully digital?

This unified platform marks a major shift for Thai and foreign companies, replacing years of fragmented compliance with one streamlined, online process. Businesses that navigate these changes correctly reduce risk, cut down on paperwork, and gain real-time visibility over tax status.

The landscape is changing fast: updated compliance thresholds, digital-only filing, and category-specific rules now govern how every tech startup, SaaS provider and finance company is taxed. Clear guidance is essential.

Thailand D-VAT & SBT System 2025

How the D-VAT & SBT System Works

Thailand’s D-VAT & SBT System defines how businesses must handle tax on goods, services, and specialized activities. D-VAT (Digital VAT) covers sales of goods, most services, and all digital products, including those from foreign providers. SBT (Specific Business Tax) applies to activities like banking, real estate sales, insurance, and pawn broking, which are not covered by VAT.

A single business activity is subject to either D-VAT or SBT, never both. Starting September 1, 2025, all registrations, filings, payments, and refund requests must use a unified digital platform.

Key scenarios include:

• A SaaS provider selling to Thai customers must register under D-VAT if sales exceed THB 1.8 million annually
• A finance company will fall under SBT, regardless of its revenue size

This approach minimizes overlap and clarifies compliance. For full legal definitions and updates, the Thailand Revenue Department – VAT and SBT Overview is recommended.

Why the Digital Platform Is Revolutionary

Thailand’s digital tax system shifts all compliance to a user-centered, secure online platform.

The D-VAT & SBT portal offers:

• Single sign-on for taxpayer registration
• Online return submission
• e-Payment options
• Faster, trackable refund processing

This new model improves accuracy, trims manual paperwork, and saves time for both local and foreign businesses. Businesses can check filing status in real time and access multilingual guidance.

The upgrade brings transparency and consistency, empowering Thai and international entities with a streamlined path to tax compliance. Thailand’s move to digital-first tax will shape compliance practices well beyond 2025.

Efficient tax digitalization is now the standard. Clear rules mean less confusion, fewer errors, and more resources for running your business.

D-VAT Compliance Essentials

Who Must Register for D-VAT & When?

Businesses with annual sales over THB 1.8 million must register for D-VAT, including foreign digital service providers selling to Thai consumers.

Micro and small enterprises falling below the THB 1.8 million threshold are typically exempt, reducing unnecessary compliance burdens.

Registering requires:

• Business registration documents
• Proof of identity and address
• A list of digital goods or services
• Documents uploaded to the D-VAT digital platform within 30 days of exceeding the threshold

Core D-VAT Rules, Rates & Filing Steps

From September 2025, the D-VAT rate is 7% (extended through September 2026 by Royal Decree). All invoicing, credit notes, and filing are managed digitally.

Monthly D-VAT returns and payments are now mandatory, with automated reminders and real-time tracking for compliance.

Key best practices:

• Keep detailed digital records and sales logs
• Review new invoicing formats for digital services
• Prepare for Revenue Department audits with complete documentation

See authoritative VAT guidelines: OECD – VAT/GST Guidelines on Digital Services

Staying informed and using Thailand’s unified D-VAT system empowers businesses to manage digital tax efficiently and confidently.

SBT Tax Regulations & Risks

Businesses Liable & Main Exemptions

Businesses subject to Specific Business Tax (SBT) in Thailand are those engaged in financial services, insurance, real estate sales, pawnbroking, or specified securities transactions.

Activities covered include:

• Banking, finance, and lending institutions
• Insurance companies (including life insurance investment income)
• Pawnshops and pawnbroking services
• Sale of immovable property (such as real estate)
• Certain securities and asset management transactions

Non-SBT activities are typically:

• Services already subject to VAT
• Activities specifically exempted by law (such as some government institutions)
• Non-business property sales
• State entities under prescribed criteria

SBT rates vary:

• Banking and finance: 3% plus a 10% local surcharge
• Life insurance: 2.5% on investment income
• Real estate sales: 0.1%
• Pawnbroking: 2.5%
• Other sectors: 0.01%-3%, exact rate per law

A business pays SBT on the gross receipts from its core specified activity, with the 10% local surcharge applied to the calculated amount.

Registration, Filing & Avoiding Penalties

SBT registration must be completed within 30 days of starting relevant activities.

Here’s the efficient, mistake-proof process:

1. Gather necessary documents: business registration certificate, director identification, proof of business address, sector approvals, Form ภธ. 01.
2. Submit Form ภธ. 01 through the D-VAT & SBT online platform.
3. Receive a digital Taxpayer ID for SBT compliance.

Monthly filing steps:

• File Form ภธ. 40 by the 15th of each month
• Report total gross receipts for SBT activities
• Pay applicable SBT and local surcharges through the digital portal

Penalties for late filing or payment include statutory fines and surcharges.

Setting up accurate digital records, using the new unified portal, and staying aware of deadlines equip businesses with strong audit readiness and clear compliance confidence.

D-VAT vs SBT: Choosing the Right Tax

How Do D-VAT and SBT Differ?

To ensure correct compliance, start by mapping your business activities to the right tax type using these distinctions:

Scope:

• D-VAT: Most goods, services, imports, and digital services.
• SBT: Financial institutions, real estate, insurance, pawnshops, specified securities.

Rates:

• D-VAT: 7% (until September 2026).
• SBT: 0.1%-3% plus 10% local surcharge.

Filing:

• Monthly returns for both, but on separate forms.

Registration:

• D-VAT: THB 1.8M annual threshold for digital providers.
• SBT: No threshold; register within 30 days.

For a stepwise transaction mapping:

1. Identify your service or product type.
2. Check if listed as VAT-eligible or SBT-specified.
3. Confirm the correct registration path digitally.

Hidden Challenges in Dual-Tax Environments

Overlapping models, such as proptech or hybrid fintech, commonly straddle D-VAT and SBT.

Key risk areas:

• Gray zones where product offerings fit both categories.
• Increased scrutiny: Post-2025, Revenue Department audit rates may rise by 20% for digital-first firms.
• Compliance tip: Update transaction records monthly to avoid dual claims and reinforce audit trails.

Correct tax mapping is essential in Thailand’s digital era.

Businesses that use the integrated system, verify activity categorization, and monitor updates remain best-positioned for compliance and operational peace of mind.

D-VAT & SBT Registration, Filing & Audit

Step-by-Step D-VAT & SBT Registration

Moving to the D-VAT & SBT system in Thailand means every business must register online, either for VAT or SBT, before transacting taxable business.

The new platform requires:

• Creating a digital taxpayer account
• Uploading proof of business registration, business address, and authorized representative IDs
• Providing sector-specific documents for SBT or D-VAT as needed

The most common mistakes include:

1. Incorrect or mismatched document uploads
2. Using outdated business information
3. Missing deadlines for initial registration
4. Selecting the wrong tax type
5. Overlooking mandatory fields on the application
6. Failing to update stakeholders’ details
7. Not checking acknowledgment receipts
8. Ignoring system-generated notifications
9. Disregarding sector-specific requirements
10. Relying only on manual or paper filings

Average registration processing time is 3-7 business days. If technical issues arise, contact the Thailand Digital Government Agency E-filing Portal for support.

2025 Filing & Payment Deadlines

For both D-VAT and SBT, monthly returns are due by the 15th of the following month. A seven-day online grace period applies, but late submissions attract statutory fines and interest charges.

Use these practical tools to manage compliance:

• Automated digital reminders on the government portal
• Archiving transaction records in secure, cloud-based systems
• Subscription-based compliance tools for real-time status updates

Centralized digital filing empowers businesses with simplicity and reduces manual errors, making regulatory compliance more efficient than ever.

FAQ: D-VAT & SBT for Businesses in Thailand

D-VAT & SBT System in Thailand: What Businesses Must Know is essential for decision makers in every sector. Registration, filing obligations, and compliance now depend on clear thresholds and defined documentation, especially for cross-border business.

Who Needs to Register and What Triggers It?

Foreign e-commerce and SaaS companies must register for D-VAT if digital sales to Thai consumers reach THB 1.8 million in any 12-month period as of 2025.

A single transaction is generally only subject to D-VAT or SBT, never both, following Thai tax law.

Key documents for SBT online registration include:

• Business registration certificate
• Director identification
• Proof of business address
• Form ภธ. 01
• Sector-specific documents

What Happens If a Filing Is Missed?

Missing a D-VAT or SBT filing deadline results in statutory penalties and surcharges, and can trigger administrative reviews by the Revenue Department.

Timely, digital filing dramatically reduces risk and protects your business from unnecessary penalties.

Thailand’s digital tax systems make compliance practical, fast, and trackable. Accurate monthly returns and early registration are your keys to sustainable business operations. Prompt online filing for D-VAT or SBT is the simplest way to protect your business from costly penalties.

Conclusion

Embracing Thailand’s unified D-VAT and SBT digital system empowers your business to comply with precision, reduce manual burdens, and gain new control over tax processes, unlocking clarity where complexity once prevailed.

Take these next steps to safeguard compliance and drive efficiency: register promptly online, set automated reminders for monthly filings, digitize your transaction records, and review each revenue stream against current tax categories to avoid costly missteps.

When navigating evolving tax rules, working with Themis Partner ensures you receive tailored, up-to-date guidance. Contact us today, our specialized team will help you streamline registration, maintain full compliance, and focus your energy where it matters most: growing your business.