- Bhutan will implement a new GST regime on January 1, 2026, replacing the current sales tax system with a standard rate of 5%
- Nonresident service providers must register for GST if their gross sales exceed BTN 5 million annually or BTN 2.5 million in six months, and must appoint a local representative
- The GST applies to imported business to consumer services provided by nonresidents to Bhutanese consumers, including electronic services like websites, software, and digital content
- A person is considered a Bhutanese consumer if their contact and billing address is in Bhutan and they pay through a Bhutanese bank or card
- GST collection obligations only apply to B2C supplies, not B2B transactions between businesses
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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