- Maldives is amending its GST law to close a loophole involving foreign tour operators and online booking platforms.
- The new “Destination Principle” would tax tourism services based on where they are consumed in the Maldives, not where the seller is based.
- The change aims to bring offshore-sold Maldivian tourism services into the tax net and reduce tax avoidance.
- Parliament is being asked to approve the reform, which is expected to generate about MVR 1.61 billion in extra annual revenue.
- The measure is also meant to create fairer competition between domestic businesses and overseas companies selling Maldivian tourism products.
Source: standard.mv
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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