VAT GST in Bhutan

Vat / gst for Bhutan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Bhutan · tax year 2025 · changed 25 Jun 2026

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Key figures: Bhutan, 2025

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GST/VAT in force in 2025

None — no GST/VAT operated in 2025; indirect tax was Sales Tax until GST commencementSales Tax, Customs and Excise Act of the Kingdom of Bhutan 2000View source ↗

GST commencement date

1 January 2026Goods and Services Tax Act of Bhutan 2020 (as amended 2025)View source ↗

GST standard rate (from 2026)

5% flat on taxable supplies and taxable imports of goods and servicesGoods and Services Tax Act of Bhutan 2020 (as amended 2025)View source ↗

Originally legislated GST rate (2020 Act)

7% (single rate, later reduced to 5% by the 2025 amendment)Goods and Services Tax Act of Bhutan 2020View source ↗

GST exemptions / zero-rated essentials

Exemption for rice, cooking oil and salt, sanitary pads, and electronic wheelchairs for persons with disabilitiesGoods and Services Tax Act of Bhutan 2020 (as amended 2025)View source ↗

GST registration threshold

Annual turnover threshold set in the GST Act / Rules BTN ((approx — confirm threshold amount in GST Rules))Goods and Services Tax Act of Bhutan 2020 (as amended 2025)

GST administration system

Administered via the Bhutan Integrated Taxation System (BITS) operated by DRCGoods and Services Tax Act of Bhutan 2020 (as amended 2025)View source ↗

GST return filing frequency

Periodic (typically monthly) returns under the GST Act and Rules ((approx — confirm frequency in GST Rules))Goods and Services Tax Act of Bhutan 2020 (as amended 2025)

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Indirect tax — Sales Tax (2025) and incoming GST

Bhutan did NOT have a VAT/GST in force during income year 2025; the indirect tax was the historic Sales Tax (plus customs and excise). The Goods and Services Tax Act of Bhutan 2020 (as amended in 2025) introduces a GST that takes effect 1 January 2026 at a flat 5% rate, replacing Sales Tax. The facts below describe the incoming GST framework for planning.

GST/VAT in force in 2025 — None — no GST/VAT operated in 2025; indirect tax was Sales Tax until GST commencement (Sales Tax, Customs and Excise Act of the Kingdom of Bhutan 2000)
GST commencement date — 1 January 2026 (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))
GST standard rate (from 2026) — 5% flat on taxable supplies and taxable imports of goods and services percent (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))
Originally legislated GST rate (2020 Act) — 7% (single rate, later reduced to 5% by the 2025 amendment) percent (Goods and Services Tax Act of Bhutan 2020)
GST exemptions / zero-rated essentials — Exemption for rice, cooking oil and salt, sanitary pads, and electronic wheelchairs for persons with disabilities (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))
GST registration threshold — Annual turnover threshold set in the GST Act / Rules BTN ((approx — confirm threshold amount in GST Rules)) (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))
GST administration system — Administered via the Bhutan Integrated Taxation System (BITS) operated by DRC (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))
GST return filing frequency — Periodic (typically monthly) returns under the GST Act and Rules ((approx — confirm frequency in GST Rules)) (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))
Reverse charge on imported services — GST on taxable imports of goods and services is collected, including reverse-charge mechanism on imported services ((approx — confirm reverse-charge scope)) (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))
Excise Tax — Excise Equalization Tax provisions repealed from the GST Act; a standalone Excise Tax Act introduced (Excise Tax Act of Bhutan 2025)

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Indirect tax — Sales Tax (2025) and incoming GST

GST/VAT in force in 2025 — None — no GST/VAT operated in 2025; indirect tax was Sales Tax until GST commencement (Sales Tax, Customs and Excise Act of the Kingdom of Bhutan 2000)

GST commencement date — 1 January 2026 (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))

GST standard rate (from 2026) — 5% flat on taxable supplies and taxable imports of goods and services percent (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))

Originally legislated GST rate (2020 Act) — 7% (single rate, later reduced to 5% by the 2025 amendment) percent (Goods and Services Tax Act of Bhutan 2020)

GST exemptions / zero-rated essentials — Exemption for rice, cooking oil and salt, sanitary pads, and electronic wheelchairs for persons with disabilities (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))

GST registration threshold — Annual turnover threshold set in the GST Act / Rules BTN ((approx — confirm threshold amount in GST Rules)) (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))

GST administration system — Administered via the Bhutan Integrated Taxation System (BITS) operated by DRC (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))

GST return filing frequency — Periodic (typically monthly) returns under the GST Act and Rules ((approx — confirm frequency in GST Rules)) (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))

Reverse charge on imported services — GST on taxable imports of goods and services is collected, including reverse-charge mechanism on imported services ((approx — confirm reverse-charge scope)) (Goods and Services Tax Act of Bhutan 2020 (as amended 2025))

Excise Tax — Excise Equalization Tax provisions repealed from the GST Act; a standalone Excise Tax Act introduced (Excise Tax Act of Bhutan 2025)