Compendium · Asia · Bhutan
Bhutan: VAT on digital services
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Not supported by the free-threshold API · Local term: VAT
Last verified: 2026-11-03
From 2026-01-01 Bhutan GST (5% after Amendment Law 2025 cut from proposed 7%) requires non-residents supplying imported B2C services / electronic services to Bhutanese consumers to register when turnover hits Nu/BTN 5m (or 2.5m in 6 months / expected 5m), appoint a local GST representative, and charge GST; EDP may be deemed supplier
The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
Spot a mistake in Bhutan’s rules?
Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.
Threshold and rates (VAT)
- Free threshold?
- No — The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
- Amount / measure
- —
— - Window
- No threshold window (from the first sale)
- Standard rate
- —
— - Who must register
- Domestic GST registration at Nu 5m threshold; BITS system; private-to-business qualitative
- Evidence of location
- Bhutanese consumer if contact and billing address in Bhutan AND (payment bank in Bhutan OR card issued in Bhutan) — KPMG summary of GST Act (two-part test)
- Invoicing
- Registered person must issue serially numbered tax invoice by time GST payable, including supplier/customer details and amounts (KPMG)
- Filing
- —
- Effective
- Region verify 2026-11-03
- Authority
- DRC — Consolidated GST Act 2020 + amendments (EN)
What Botchannels returns
- Ruleset version
2026-10-22.v1- Decision summary
- Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
- Product class
- Digital service
- Support status
- Not supported by the free-threshold API — The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
How to register
- Self-register online?
- See detail — See the authority pages linked in the sources
- Resident representative / fiscal agent
- —
- Regime
- —
Steps (in order)
- —
Documents
—- Official processing time
- — (unverified)
- Official fees
- —
- Portal
- https://www.drc.gov.bt/wp-content/uploads/2025/10/Consolidation_GST-Act-of-Bhutan-2020-and-Amedment-thereof-_English.pdf
- Local bank account
- —
- Filing frequency
- —
- Payment currency
- —
- Input VAT recovery
- —
- Portal language
- —
- Penalties
- —
Firms offering this service
No verified provider links for this jurisdiction yet. Prefer the official portal and a locally licensed tax adviser.
Region verify
Facts imported on 2026-11-03. Overall confidence: secondary. A field marked indicative is unverified and is not a decision by itself.
| Field | Summary |
|---|---|
| Evidence of customer location | Bhutanese consumer if contact and billing address in Bhutan AND (payment bank in Bhutan OR card issued in Bhutan) — KPMG summary of GST Act (two-part test) (secondary) |
| Non-resident digital tax | From 2026-01-01 Bhutan GST (5% after Amendment Law 2025 cut from proposed 7%) requires non-residents supplying imported B2C services / electronic services to Bhutanese consumers to register when turnover hits Nu/BTN 5m (or 2.5m in 6 months / expected 5m), appoint a local GST representative, and charge GST; EDP may be deemed supplier (secondary) |
| Collect and remit | Supplier remits unless an electronic distribution platform is responsible and must charge/collect GST (KPMG / Act) (secondary) |
| B2C invoice | Registered person must issue serially numbered tax invoice by time GST payable, including supplier/customer details and amounts (KPMG) (secondary) |
| Local payment methods | BT bank or BT-issued card is part of the statutory consumer-location test (secondary) |
| Seller located in this place | Domestic GST registration at Nu 5m threshold; BITS system; private-to-business qualitative (secondary) |
Official sources
DRC — Consolidated GST Act 2020 + amendments (EN)
DRC GST Rules 2026 PDF
MoF public notification on GST registration threshold
KPMG — Bhutan GST Oct 2025
Last verified: 2026-11-03.
FAQ
- Is this tax advice?
- No. This page summarises region-verify notes for foreign digital sellers. It is not tax or legal advice