Bhutan sets GST at 5% and fixes 1 January 2026 as the start date
This page records one dated change. For the rules in Bhutan as they stand today, see the Bhutan guide →
- Jurisdiction
- Bhutan
- Tax
- GST
- Change type
- Rate change
- Status
- In force
- Impact
- FYI
- Announced
- 15 July 2025
- Effective
- 1 January 2026
- Authority
- Department of Revenue and Customs, Ministry of Finance (Bhutan)
- Verified
- Fetched from official source · high confidence
Businesses in Bhutan with annual turnover above Nu 5,000,000, which must register for GST, and importers of taxable goods and services.
No action — GST at 5% has been in force since 1 January 2026.
The Goods and Services Tax (Amendment) Act of Bhutan 2025 amended section 2 of the GST Act of Bhutan 2020 to set commencement at 1 January 2026 and amended Schedule I to fix the GST standard rate at 5%. The registration threshold remains Nu 5,000,000 per annum under Schedule II. The Act was enacted by 15 July 2025, the date of the Speaker's letter (Parliament of Bhutan) transmitting it, which is reproduced in the official text published by the DRC. The exact Royal Assent date is not stated in English in any official text reached.
What changed in detail
The Goods and Services Tax (Amendment) Act of Bhutan 2025 amends the GST Act of Bhutan 2020 and earlier amending Acts. The Department of Revenue and Customs (DRC) publishes the official text with a letter from the Speaker of the Parliament dated 15 July 2025 transmitting the enacted Act. The text gives no Royal Assent date in English.
The Act:
- comes into force on 1 January 2026 (section 2; in the Bhutanese calendar, the 13th day of the 11th month of the Wood Female Snake Year), and does not apply retroactively (section 3);
- amends the 2022 amending Act so that GST accounting, payment, refunds and registration all start on 1 January 2026 (section 5);
- replaces Schedule I so that, apart from the zero rate in Schedule V, the GST rate on taxable supplies and taxable imports is 5% (section 67).
The registration threshold in Schedule II is unchanged at Nu 5,000,000 a year.
The DRC’s consolidated GST Act (September 2025 consolidation) shows Schedule I at 5% with the note “Amended by section 67 of the GST (Amendment) Act of Bhutan 2025”.
What it means
GST at 5% has been in force since 1 January 2026 and the rate has not changed since. The GST (Amendment) Act of Bhutan 2026 added fresh butter, more rice and cooking-oil categories and automatic wheelchairs to the exempt list.
Businesses above the Nu 5 million threshold should be registered, charging 5% and filing under the GST Act. The 15 July 2025 date on this record comes from the Speaker’s letter and is the earliest officially confirmed date of enactment; the Act itself does not state when it received Royal Assent.
Proof
Other than the zero rate prescribed in Schedule V, the applicable GST rate on taxable supplies and taxable imports of goods and services shall be 5%. [Amended by section 67 of the GST (Amendment) Act of Bhutan 2025]
Source snapshot of the official page. Open full size ↗Archived from the official distribution · Consolidated Goods and Services Tax Act of Bhutan 2020 and amendments, Part III, Schedule I (p. 146) · www.drc.gov.bt
This Act comes into force on the 13th day of the 11th month of the Wood Female Snake Year corresponding to the 1st day of January 2026.
Source snapshot of the official page. Open full size ↗Archived from the official distribution · Goods and Services Tax (Amendment) Act of Bhutan 2025, section 2 (Commencement) · www.drc.gov.bt