Maldives Shifts GST Policy from Origin to Destination Principle, Raises Tourism Tax

• GST liability in the Maldives currently follows the origin principle based on the customer location
• Plans are underway to adopt the destination principle where GST is applied based on the location of goods or service supply
• This change will require foreign tourism providers and digital platforms to charge Maldivian GST on local services
• The GST Act is being amended to increase the GST rate on tourism services from 16 percent to 17 percent

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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