Bt Vat Gst

---
name: bt-vat-gst
description: "Source-cited draft: vat / gst for Bhutan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/bt-vat-gst"
  jurisdiction: "BT"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Bhutan VAT / GST

## 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](https://kpmg.com/us/en/taxnewsflash/news/2025/10/tnf-bhutan-new-gst-regime-to-replace-existing-sales-tax-framework.html))_
- **GST commencement date** — 1 January 2026  _([Goods and Services Tax Act of Bhutan 2020 (as amended 2025)](https://sovos.com/regulatory-updates/vat/bhutan-gst-implementation-effective-january-1-2026/))_
- **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)](https://www.fonoa.com/resources/blog/bhutan-gst-rollout-2026))_
- **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](https://nab.gov.bt/index.php/post/third-reading-of-the-goods-and-services-tax-amendment-bill-of-bhutan-2025))_
- **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)](https://thebhutanese.bt/new-amendments-in-the-gst-act-put-smart-phones-and-telecom-bills-under-7-tax/))_
- **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)](https://thebhutanese.bt/gst-to-be-introduced-from-1st-july-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](https://nab.gov.bt/index.php/post/third-reading-of-the-goods-and-services-tax-amendment-bill-of-bhutan-2025))_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `bt-vat-gst` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/bt-vat-gst. If neither is available, confirm every figure against the official source pages cited above before relying on it.