Following the 8th amendment to the Goods and Services Tax Act, the Maldives Inland Revenue Authority (MIRA) has announced that foreign tour operators and agencies selling Maldivian tourism products and booking services will be required to pay GST effective from October 1st. As this change is based on the internationally recognized “Destination Principle” and specifically targets foreign entities, there will be no alterations to the GST payment procedures or tax rates applicable to local businesses. MIRA is currently in the process of establishing the necessary regulations, procedures, and registration frameworks for the foreign taxpayers subject to this law.
