Last updated : 11.05.2026
Expense rules in Bhutan.
Bhutan applies GST at 7% (since 2024, previously sales tax). Himalayan kingdom, GNH (Gross National Happiness) index.
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1Expense rules & reclaimable VAT
GST 7% new (2024). BTN pegged to INR (1:1, INR accepted).
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 7% | Deductible | Tax invoice + TIN |
| Lodging | 7% | Deductible | TIN |
| Alcohol | Excise | Limited | Excluded |
| Fuel | 7% | Deductible | Invoice |
| Transport | 7% | Deductible | Taxi/airfare |
| Gifts | 7% | Non-deductible | Cap |
Receipt
Tax invoice
TIN mandatory
SourcesBhutan Revenue & Customs
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Invoice |
| Company car | – | Card | – |
| Taxi | – | 100% receipt | Invoice |
Tracking
Logbook
Date, distance
SourcesBhutan Revenue & Customs
3Per diem and travel allowances
Company policy. Thimphu most expensive. SDF (Sustainable Development Fee) $100/day for tourists.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Thimphu | BTN 600 | BTN 2 500 | BTN 4 500 |
| Paro | BTN 550 | BTN 2 200 | BTN 4 000 |
| Punakha | BTN 500 | BTN 2 000 | BTN 3 500 |
| Other | BTN 450 | BTN 1 800 | BTN 3 200 |
Conversion
~1 EUR = 95 BTN
INR peg
SourcesBhutan Revenue & Customs
4Foreign VAT recovery
Residents only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | Credit | Monthly | GST return |
| Non-resident | None | – | Final cost |
| Hydro/Industrial | Conventions | Per contract | Regime |
Limitations
5 years
Keep
SourcesBhutan Revenue & Customs
Centralize your Bhutan expenses
Illizeo handles TIN tax invoices, BTN/INR dual currency and GST compliance for your teams in Bhutan.
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