Maldives Proposes GST Regime for Offshore Tourism Platforms

Summary

• The Maldives government submitted a bill extending GST to inbound tourism products sold by foreign tour operators, travel agents and offshore booking platforms without a permanent place of business in the Maldives. [IBFD Tax N…ugust 2026 | Outlook], [FW: IBFD T…ugust 2026 | Outlook], [ctlstrategies.com]
• Inbound tourism products include accommodation, food, transport and other tourism activities operated in the Maldives. The proposal applies destination-based place-of-supply rules. [IBFD Tax N…ugust 2026 | Outlook], [ctlstrategies.com]
• Under the specialist analysis of the proposed text, the regime would tax the foreign supplier’s margin or commission and deny input tax deduction under that special regime. The bill is still under parliamentary consideration. [ctlstrategies.com]

Extended article

The proposed Eighth Amendment to the Maldivian GST Act would bring offshore sellers of Maldives tourism products within the GST system.

A foreign operator without a permanent place of business in the Maldives could become subject to tourism GST when it sells or arranges accommodation, food, transport or other Maldives tourism activities. [ctlstrategies.com]

The specialist analysis published by CTL Strategies indicates that the taxable value under the proposed special regime is the consideration received from the traveller less the amount payable for the underlying tourism product. The resulting GST burden therefore applies to the foreign supplier’s margin rather than the full customer payment. [ctlstrategies.com]

External sources: Analysis of the proposed Eighth GST Amendment and overview of the offshore tourism GST proposal. [ctlstrategies.com], [hoteliermaldives.com]

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• The Maldives government has introduced a bill to expand GST to offshore booking platforms, foreign tour operators, and travel agents under the “destination principle.”
• The amendment would tax goods and services provided in the Maldives, including inbound tourism products and charter trips, even if the businesses have no physical presence there.
• The new tax would start on October 1 at the existing 16% TGST rate, once MIRA sets up payment channels with foreign firms.
• The government estimates implementation will cost MVR 7.9 million but could raise about MVR 1.6 billion annually, or USD 104.1 million.
• The move is aimed at boosting foreign currency revenue amid a severe dollar shortage.

Source: adhadhu.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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