Maldives Brings Overseas Holiday Sellers into GST from 1 October

Overseas tour operators, travel agents and booking platforms selling Maldives tourism products will enter the country's tourism GST system on 1 October, under rules issued by the Maldives Inland Revenue Authority.

The change applies to foreign suppliers without a fixed place of business in the Maldives. It covers inbound tourism products and related booking or agency services.

The eighth amendment to the GST Act, issued on 31 August, treats the covered transactions as supplies made in the Maldives, bringing overseas sellers within the tax's scope.

Tourism GST is 17 per cent, the rate in force since 1 July 2025. The October measure changes which suppliers and transactions are covered.

MIRA's 11 September registration circular identifies foreign tour operators, travel agents, online platforms, bed banks and accommodation wholesalers among the businesses affected.

Registration uses form MIRA 120. Registered businesses receive access to MIRAconnect for their tax administration. The overseas supplier rules do not provide a turnover threshold below which an affected business is exempt from registration.

How the taxable amount is calculated

MIRA's overseas supplier guide sets out a formula for resold inbound tourism products. Qualifying payments to GST-registered suppliers are deducted from the amount received for the product. The difference is divided by 1.17 to establish its taxable value.

For example, a seller receiving US$1,170 and making a qualifying payment of US$936 has a GST-inclusive difference of US$234. The resulting taxable value is US$200 and GST is US$34.

This is an illustration of the formula, rather than an actual holiday quotation. Separate booking and agency fees have their own calculation under the guide.

The guide also sets rules for converting amounts into US dollars. The rate used must fall within two per cent of the Maldives Monetary Authority's relevant published rate. International air travel and services supplied outside the Maldives are treated separately from the inbound tourism product covered by these provisions.

Existing bookings and filing dates

The rules use the time of supply to determine when a transaction falls within the system. The relevant point is the earliest of the specified invoicing documents, receipt of full or partial payment, or the third day after the service is completed.

A booking's travel date is therefore separate from its tax point. The guide applies the October commencement date through these time-of-supply rules, including for bookings made earlier.

MIRA also specifies return periods. Suppliers with monthly taxable sales of at least US$64,850.84 file monthly; those below the threshold file quarterly. Returns and payments are due by the 28th of the month following the relevant taxable period.

The documentation requirements include records of the underlying tourism transactions and the payments used in calculating the taxable amount. The authority's guide covers contracts, itineraries, reservations and refunds alongside the tax calculation and return process.