With Goods and Services Tax implementation just weeks away, compliance is off to a sluggish start. Only around 50 of 4,500 taxpayers falling under compulsory GST registrants or business entities have activated their web user accounts on the Bhutan Integrated Taxation System. The Department of Revenue and Customs is urging taxpayers with an annual business turnover of Nu 5 M and above to activate their web user without delay.
Goods and Services Tax or GST, charged at a standard rate of five per cent, is a consumption-based tax applied to most goods and services in Bhutan.
It is collected at the point where goods or services are consumed.
The introduction of GST will streamline the existing tax system and significantly reduce tax evasion and avoidance. It will also broaden the tax base, contributing to improved and more efficient revenue collection. The GST will repeal the existing Sales Tax system.
According to the Department of Revenue and Customs, compulsory GST registrants or business entities are being issued new Taxpayer Numbers or TPNs.
The department has already issued more than 2,700 new TPNs via email.
The remaining 1,800 are expected to be issued within this week.
Sonam Jamtsho, Director General, Department of Revenue and Customs said, “If taxpayers have not received the email, they should check whether their registered email addresses are still valid. We also advise them to check their spam or junk folders. If they still have not received the email, they should contact the DRC before the GST is implemented.”
The DRC says taxpayers must activate their new TPN-linked web accounts to file GST from January.
Meanwhile, businesses that fail to register for GST will face fines ranging from 5,000 to 10,000 ngultrum for non-compliance with the written notice issued by the department. This is in accordance with the GST Rules 2026.
Going forward, individuals can pay all types of taxes, including income, property, and excise taxes, using a single TPN, unlike in the past with multiple taxpayer numbers.
The Director General of the Department of Revenue and Customs said, “Under the new system, the new taxpayer number will cover both individual incomes and business entities, all under a single number. This is the reason why we are issuing the new taxpayer number.”
Taxpayers can get help by calling the toll-free number 3999 or visiting the nearest Regional Revenue and Customs Office.
For now, under phase one, the DRC will implement GST using BITS starting January next year.
However, the Personal Income Tax and the Corporate Income Tax will be available from the Bhutan Integrated Taxation System from August next year. Until then, PIT and CIT for the income year 2025 will have to be filed using RAMIS.
Kinzang Lhadon
