Bhutan GST implementation is off indefinitely

Bhutan Integrated Taxation System (BITS) platform delayed indefinitely

Following the last-minute delayed rollout of a new Goods and Sales Tax to replace Sales Tax on 1 July 2022, the government has confirmed that it will put on hold any future plans to introduce that VAT-like consumption tax. There had been a plan to attempt again to replace the Sales Tax in July 2024.

Reasons for delay include IT issues and COVID-19 lockdowns.

The introduction of a cascading VAT-like tax has been proposed several times over the years, only to be postponed for differing reasons.

171 countries have a VAT or GST regime at July 2022.

Goods & Services Tax in Bhutan

The indirect tax, similar in design to VAT, was scheduled to replace a range of sales taxes which overlap.  The new GST rate is expected to be 7% on domestic supplies and imports. Exports and certain other supplies will be set at zero or exempted altogether. Foreign providers of digital services will be responsible for charging GST, and registering with the tax office to report liabilities. There will however be a GST registration threshold of BTN 5million per annum.

You can check the right VAT calculations on individual or batch transactions with our Advisor and Auditor services.

Countries with VAT or GST regime