Skip links

Bhutan 5% Goods and Services Tax 2026 implementation

Author: Published on: Published in: Bhutan

Bhutan 5% GST to replace Sales Tax and Excise Tax – National Assembly approval

The much-postponed introduction of Goods and Services Tax to Bhutan is set to commence in January 2026. The introduction standard rate of GST is expected to be 5%. The imposing legislation, The GST (Amendment) Bill was passed by Parliament, the National Assembly, on 2 July 2025 and published by the Ministry of Finance.

World’s only single tax engine & reporting application, with global calculations and returns in a single implementation

 

Find out more

This includes wholesale withdrawal of the current Sales Tax exemptions from hundreds of goods and services, plus the right to deduct input GST incurred by businesses.

In July 2022, the government had put on hold any future plans to introduce that VAT-like consumption tax. This was due to problems with the Integrated Taxation System platform and COVID.

175 countries have a VAT or GST regime at June 2025.

5% 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 5% 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

Country Year Country Year
1  Albania 1995 87 Kiribati 2014
2 Algeria 1992 88 Korea, South 1977
3 Andorra 2013 89 Kosovo 2001
4 Angola 2019 90 Kyrgyzstan  1999
5 Anguilla 2022 91 Lao 2010
6 Antigua and Barbuda3 2007 92 Latvia 1995
7 Argentina 1974 93 Lebanon  2002
8 Armenia 1993 94 Lesotho 2003
9 Australia 2000 95 Liechtenstein 1995
10 Austria4 1973 96 Lithuania 1994
11 Azerbaijan 1992 97 Luxembourg 1970
12 Bahamas 2015 98 Madagascar 1994
13 Bangladesh  1991 99 Malawi 2002
14 Barbados 1997 100 Maldives 2011
15 Bahrain 2018 101 Mali 1991
16 Belarus 1991 102 Malta 1999
17 Belgium 1971 103 Mauritania 1995
18 Belize 2006 104 Mauritius 1998
19 Benin 1991 105 Mexico 1980
20 Bolivia 1986 106 Moldova 1998
21 Bosnia Herzegovina 2006 107 Monaco 1968
22 Botswana 2002 108 Mongolia  1998
23 Brazil 1964 109 Montenegro 2003
24 Bulgaria 1994 110 Morocco 1986
25 Burkina Faso 1993 111 Mozambique 1999
26 Burundi 2009 112 Namibia 2000
27 Cambodia 1999 113 Nepal  1997
28 Cameroon 1999 114 Netherlands 1969
29 Canada 1991 115 New Zealand 1986
30 Cape Verde 2004 116 Nicaragua 1975
31 Central African Republic 2001 117 Niger 1986
32 Chad 2000 118 Nigeria 1994
33 Chile 1975 119 Niue 2009
34 China (People’s Republic) 1994 120 North Macedonia 2000
35 Colombia 1983 121 Norway 1970
36 Commonwealth of Dominica 2006 122 Oman 2021
37 Congo (Dem. Republic) 2012 123 Pakistan  1990
38 Congo (Republic) 1997 124 Panama 1977
39 Cook Islands 1997 125 Papua New Guinea  1999
40 Costa Rica 2019 126 Paraguay 1993
41 Côte d’Ivoire 1960 127 Peru 1991
42 Croatia 1998 128 Philippines 1988
43 Cyprus6 1992 129 Poland 1993
44 Czech Republic 1993 130 Portugal 1986
45 Denmark 1967 131 Romania 1993
46 Djibouti 2009 132 Russia 1991
47 Dominican Republic 1983 133 Rwanda 2001
48 Ecuador 1970 134 Saint Kitts and Nevis 2010
49 Egypt 2017 135 Saint Lucia 2012
50 El Salvador 1992 136 Saint Vincent and the Grenadines 2007
51 Equatorial Guinea 2005 137 Samoa 1994
52 Estonia 1991 138 Saudi Arabia 2018
53 Eswatini 2012 139 Senegal 1980
54 Ethiopia 2003 140 Serbia 2005
55 Faroe Islands 1993 141 Seychelles 2012
56 Fiji 1992 142 Sierra Leone 2009
57 Finland 1994 143 Singapore 1994
58 France 1968 144 Slovak Republic 1993
59 Gabon 1995 145 Slovenia 1999
60 Gambia 2013 146 South Africa 1991
61 Georgia 1993 147 Spain 1986
62 Germany 1968 148 Sri Lanka  1998
63 Ghana 1998 149 Sudan 2000
64 Greece8 1987 150 Sweden 1969
65 Grenada 2010 151 Switzerland 1995
66 Guatemala 1992 152 Chinese Taipei 1986
67 Guinea 1996 153 Tajikistan  1992
68 Guinea-Bissau 2001 154 Tanzania 1998
69 Guyana 2007 155 Thailand 1992
70 Haiti 1982 156 Togo 1995
71 Honduras 1964 157 Tonga 2005
72 Hungary 1988 158 Trinidad and Tobago 1990
73 Iceland 1990 159 Tunisia 1988
74 India 2017 160 Turkey 1984
75 Indonesia 1985 161 Turkmenistan  1992
76 Iran 2008 162 Uganda 1996
77 Ireland 1972 163 Ukraine 1992
78 Isle of Man 1973 164 UAE 2018
79 Israel 1976 165 UK 1973
80 Italy 1973 166 Uruguay 1972
81 Jamaica 1991 167 Uzbekistan  1992
82 Japan  1989 168 Vanuatu 1998
83 Jersey 2008 169 Venezuela 1993
84 Jordan  2001 170 Vietnam 1999
85 Kazakhstan  1992 171 Zambia 1995
86 Kenya 1990 172 Zimbabwe 2004

administrator

Richard is a frequent contributor to international VAT and GST debate and public policy consultations. Prior to VATCalc, he helped establish and grow two tax tech businesses. He started his career with the 'Big-4', working with KPMG and EY in the UK, Hungary, Russia and France

You may also like

Newsletter

Get our latest news right in your mailbox

Subscribe

* indicates required