Maldives Extends Tourism GST to Foreign Tour Operators and Booking Platforms

• The President of the Maldives ratified the Eighth Amendment to the GST Act on 31 August 2026. The amendment moves the system further toward destination-based taxation and brings qualifying offshore suppliers of Maldives tourism products into the GST framework.  [mcolawyers.mv]
• Foreign tour operators, online travel agents and booking platforms without a permanent presence in the Maldives may be liable for tourism GST when selling or arranging accommodation, food, transportation and other tourism activities operated in the Maldives. [kpmg.com], [ctlstrategies.com], [mcolawyers.mv]
• The special regime applies GST to the foreign supplier’s margin or commission rather than the full amount paid by the traveller. The supplier is not entitled to deduct input tax under the special treatment. [kpmg.com], [ctlstrategies.com], [mcolawyers.mv]

Extended article

The Maldives has enacted an important expansion of its tourism GST regime to cover offshore operators selling or arranging Maldives tourism products.

The Eighth Amendment to the Goods and Services Tax Act was ratified on 31 August 2026. It advances a destination-based approach under which the place where goods and services are consumed becomes central to determining Maldivian GST liability. [mcolawyers.mv]

The new rules target foreign tour operators, online travel agencies and offshore booking platforms supplying inbound tourism products without a permanent place of business in the Maldives. An inbound tourism product includes accommodation, meals, transportation and other tourism activities carried out in the Maldives. [kpmg.com], [ctlstrategies.com], [mcolawyers.mv]

The rules also cover agency and booking services connected with those products. A foreign business cannot therefore assume that the absence of a physical office or establishment in the Maldives removes its GST obligations.

The special valuation mechanism is based on the operator’s margin. The taxable value is generally the consideration received from the traveller less the amount payable to the registered supplier providing the underlying tourism product. GST is therefore applied to the operator’s margin or commission rather than to the entire customer payment. [kpmg.com], [ctlstrategies.com], [mcolawyers.mv]

Foreign suppliers falling within the special regime are not entitled to deduct input tax against the GST payable on these supplies. This distinguishes the system from the ordinary GST mechanism, under which tax is generally charged on the full consideration and qualifying input tax may be deducted. [kpmg.com], [ctlstrategies.com]

Affected businesses should review contractual roles carefully. A platform acting as an intermediary may have different obligations from one acting as the principal seller of a package. Systems must also distinguish the gross amount collected from the traveller, the amount payable to the resort or local provider and the margin retained by the offshore operator.

External professional reports indicate an intended application date of 1 October 2026. Businesses should verify the effective date and detailed registration, filing and payment requirements against the final legislation and implementing guidance. [letsgomaldives.com], [kpmg.com]

External links

• Legal analysis of the enacted Maldives GST amendment [mcolawyers.mv]
• KPMG analysis of the tourism GST rules [kpmg.com]
• CTL Strategies analysis of the margin-based regime [ctlstrategies.com]