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12.1. VAT on the Supply of Goods by Non-Residents

GST is levied on the basis of consumption in Bhutan; hence, the supply of goods made by the non-resident is subject to GST in Bhutan if it is consumed in Bhutan. The supply of goods by a non-resident is subject to GST if the non-resident carries on an economic activity at or through a fixed place in Bhutan and the supply is made in the course of that economic activity, or at or through that fixed place.

A supply of goods by a non-resident is considered as a supply made in Bhutan, if:

  • the goods are delivered or made available in Bhutan; or
  • the goods are installed or assembled in Bhutan by, or under a contract with, the supplier.

A non-resident is required to appoint a GST representative in Bhutan to comply with the GST obligations.