- Bhutan will implement a single 5% Goods and Services Tax (GST) from January 1, 2026, replacing the current sales and excise tax system.
- GST registration is mandatory for businesses with annual turnover above Nu. 5 million, including foreign digital service providers and online marketplaces; voluntary registration starts at Nu. 2.5 million.
- The GST covers a wide range of electronic services, including software, virtual currencies, streaming, and online databases.
- Foreign digital service providers must register and charge GST on B2C supplies to Bhutanese consumers if they exceed the registration threshold; B2B supplies use the reverse charge mechanism.
- Online platforms facilitating sales (not just payment processing) may have GST obligations under the new regime.
Source: fonoa.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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