Maldives proposes GST on foreign travel agents and booking platforms

A new bill has been submitted to the Maldives' People's Majlis seeking to impose a Goods and Services Tax (GST) on foreign tourism-related businesses. Introduced by Mohamed Dawood, a Member of Parliament representing the People's National Congress, the amendment to the GST Act aims to implement the “destination principle” within the national tax framework.

The proposed legislation targets offshore booking platforms, foreign tour operators, and overseas travel agents providing services to the Maldivian market. To ensure compliance from these non-resident entities, the bill proposes that GST registration and collection will be coordinated through the Maldives Inland Revenue Authority (MIRA).

Projections suggest the move could significantly increase state revenue. One estimate indicates an annual increase of approximately MVR 1.6 billion, with MVR 1.3 billion expected from foreign tour operators and MVR 299.3 million from overseas travel agents. Implementation is expected to require a one-time expenditure of roughly MVR 2.8 million, alongside annual operational and staffing costs of MVR 5.1 million.