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Bhutan GST delays until July 2022

Sales Tax replacement on hold due to IT hold-ups

Bhutan has delayed the implementation of its Goods and Services Tax until 1 July 2022. It had originally been scheduled for 1 July 2021. The implementation had already been postponed from January 2021.

The indirect tax, similar in design to VAT, is 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.

The delay is due to problems in the development of the governments tax technologies. Bhutan Integrated Taxation System (BITS) or the GST software was being developed and it is expected to take up to six months to complete.

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

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