Global Daily Tax News, Bhutan To Introduce GST From January 1, 2026, (Oct 16, 2025)

Bhutan will belatedly introduce a new goods and service tax regime from January 1, 2026, featuring a five percent headline tax rate.

The Government has enacted the Goods and Services Tax (Amendment) Act of Bhutan 2025, paving the way for the implementation of the regime from the new year.

Bhutan has been eyeing introduction of GST for several years. In July 2022, lawmakers indefinitely delayed implementation, which had been expected from July 2022, contrary to calls from the Finance Minister then to legislate for a two-year delay.

The Act amends the earlier approved Goods and Services Tax Act of Bhutan 2020, adding several new provisions, including many relating to non-compliance penalties.

The 2020 law includes the vast majority of operational provisions under the new regime.

Among other things, the law provides for the collection of GST on business to consumer supplies of electronic services by the non-resident supplier, if not facilitated by an electronic distribution platform.

Tax on B2B goods and services will be liable to GST under a reverse charge. For imports, GST will be payable at the time of customs clearance.

The law sets out that GST returns must be filed no later than 30 days after the end of the relevant fiscal period, alongside payment.

The law provides that registration is required when a taxpayer's turnover exceeds BTN5m (USD56,780) in the previous 12-month period, or half this amount in the previous six-month period, or if the taxpayer expects its annual turnover to be equal or exceed the registration threshold in the upcoming 12 months.