Bhutan’s long-awaited adoption of the Goods and Services Tax (GST) will most likely be finalized with the introduction of the new regime from January 1, 2026. The adoption of the GST (Amendment) Bill 2025 laid the groundwork for the implementation of an entirely new tax regime.
The adopted GST amendment Bill stipulates that the GST system will be based on a flat rate of 5%, which will be imposed on most taxable supplies of goods and services. Some products and services will be exempt from the GST, as well as exports.
The adopted Amendment Bill 2025 is also very relevant for non-resident providers of digital services and digital platform operators. It defines the supplies of electronic services as taxable under the new regime. So, non-resident providers of digital services should register, charge, collect, and remit GST for their B2C sales.
The providers aren’t mandated to register for GST from the first taxable supply, but could benefit from the annual turnover threshold.
The registration threshold is app. USD 56,000, calculated within any 12 months.