President Dr Mohamed Muizzu has ratified amendments to the Goods and Services Tax (GST) Act, introducing mandatory GST collection on services provided by foreign tour operators and travel agents.
The amendments aim to strengthen the country’s tax system and introduce the destination principle, allowing GST to be collected on tourism-related services supplied in the Maldives, including those arranged through offshore booking platforms.
Under the new rules, services carried out in the Maldives will be considered locally supplied even when the customer or contracting company is based overseas. The rules also cover services linked to property in the Maldives.
Inbound tourism products, including accommodation, food and transportation, will also be subject to GST even when the provider does not maintain a permanent place of business in the Maldives.
The government estimates that the changes could generate an additional USD 103.8 million in annual state revenue by taxing offshore booking platforms, foreign tour operators and travel agents without a permanent presence in the country.
