Bhutan's National Assembly approved the GST (Amendment) Bill, establishing a 5% goods and services tax (GST) effective January 2026. This reform will replace the country's current sales tax and excise tax systems, removing numerous existing tax exemptions while introducing input tax deduction rights for businesses. Foreign digital service providers must register with tax authorities and charge GST on their services. 

The bottom line: Companies operating in Bhutan should prepare for the January 2026 implementation, which includes a BTN 5 million annual registration threshold. While the standard rate will be 5% on domestic supplies and imports, exports and certain other supplies will be zero-rated or exempt.