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President Enacts Legislation Mandating GST on Foreign Tour Operators

Photo Credits: The Presdient Office

The President has ratified an amendment to the tax laws, mandating that Goods and Services Tax (GST) be levied on tourism-related goods and services provided by foreign tour operators and online booking platforms, even those without a permanent establishment in the Maldives. This strategic amendment aims to strengthen the national tax framework by requiring overseas entities that sell inbound tourism services—such as local accommodation and transportation—to comply with GST obligations. The government estimates that this measure will generate an additional MVR 1.6 billion in annual state revenue.

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