Bhutan VAT / Sales Tax
Detailed vat / sales tax rates and rules for Bhutan in 2026.
VAT / Sales TaxBTN
Bhutan levies a sales tax at 7% on most goods. Certain essential items are exempt. Bhutan does not have a formal multi-stage VAT system but rather a single-stage sales tax.
Standard Rate
7%
Registration Threshold
All businesses with taxable activities
Reduced Rates
0% — Essential food items and basic necessities
How Bhutan VAT / Sales Tax compares
Bhutan’s standard VAT / sales tax rate of 7% is the 166th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.
Bhutan
7%
Asia average
9.6%
Global average
13.7%
