Maldives Moves to Revise Overseas Tourism GST after Industry Objections

The Maldives government has decided to revise the framework for collecting tourism GST from overseas sellers, following objections from travel agents and tour operators over its implementation.

The Maldives Association of Travel Agents and Tour Operators said on 4 October that Tourism Minister Mohamed Ameen had confirmed President Mohamed Muizzu’s decision to introduce changes. Its statement describes a review of the destination-principle tourism GST framework, with proposed amendments still being developed.

British travel association ABTA issued a separate update on 5 October, saying it understood that the minister had announced a postponement. ABTA said it was seeking formal confirmation and clarification of the next steps because the legislation had come into force on 1 October.

The two associations’ announcements do not establish that Parliament has repealed the overseas-seller provisions. MIRA’s published consolidated GST Act, checked on 6 October, continues to list 1 October 2026 as their commencement date.

Industry Calls for Changes

MATATO said it had been consulting local and international stakeholders and conducting an industry survey on the commercial and operational effects of the new requirements.

The association welcomed the government’s decision and said it would participate in further discussions with the government, MIRA and travel partners. Its statement did not publish replacement rules or an implementation timetable.

ABTA had written to the President on 24 September, seeking a delay of at least six months and raising concerns about the absence of consultation. It requested discussions involving European and international travel-agent associations as well as ABTA.

In its latest update, ABTA said it was continuing to work with the British High Commissioner and international industry bodies. It referred to reports of an April 2027 postponement but said formal confirmation was still being sought.

What the Published Law Covers

The GST Act extends tourism GST to specified inbound tourism products sold by overseas suppliers. That overseas collection framework is separate from the 17 per cent tourism GST rate, which has applied since 1 July 2025.

MIRA’s September registration circular had instructed overseas businesses within the new rules to register for GST. The authority also issued guidance on the treatment of inbound tourism products and the calculation of tax on qualifying transactions.

The published GST regulation sets out registration and reporting requirements for overseas suppliers. An announced review does not itself replace those published legislative provisions.

ABTA’s September statement also distinguished overseas agents acting for overseas tour operators from the operators themselves, saying those agents had been confirmed as outside the registration requirement in that capacity.

As of 6 October, the confirmed developments are the government’s decision to change the framework, reported by MATATO, and ABTA’s request for formal confirmation of the postponement. Neither association has published a final replacement tax framework.