MIRA Releases Comprehensive GST Guide for Inbound Tourism Sector

The Maldives Inland Revenue Authority (MIRA) has published a dedicated compliance guidance outlining the legal application of Goods and Services Tax (GST) to inbound tourism products and related booking or agency services.

Enacted under the Eighth Amendment to the GST Act, the legislation enforces the destination principle, ensuring that goods and services consumed within the Maldives are taxed locally regardless of the supplier’s geographic location or fixed place of business.

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Scope of Coverage and Registration Mandatory Rules

The guidance covers a broad range of inbound tourism products (ITPs), including accommodation, meals, transport, and leisure activities such as excursions, diving, water sports, spa treatments, and cultural tours.

To enforce this, MIRA requires all non-resident entities—such as foreign tour operators, travel agents, online travel agencies (OTAs), bed banks, destination management companies, and booking platforms—to register under the tourism GST sector. Unlike general business categories, no minimum turnover threshold applies to this sector; all non-resident providers supplying ITPs or related agency services to end-consumers or other resellers must register through MIRA’s dedicated online portal.

Tax Rates, Supply Valuation, and Agency Services

All covered ITPs and related booking services are subject to the standard tourism GST rate of 17 per cent.

• Inbound Tourism Products: Overseas suppliers without a fixed place of business in the Maldives calculate the taxable value using a specific statutory formula: taking the total consideration received for the ITP, deducting amounts paid to a local GST-registered supplier for that product, and adjusting for the 17 per cent tax element. Non-ITP elements, such as international flights or overseas transit stays, must be excluded from this calculation.
• Agency and Booking Services: Intermediaries charging separate booking or handling fees must calculate GST on the total fee received for providing the service, applying the 17 per cent rate to the underlying value.

Implementation Timeline and Time of Supply

The new regime applies strictly to supplies where the “time of supply” occurs on or after 1 October 2026. Under the statutory rules, the time of supply is fixed as the earliest of three events:

1. The date a tax invoice, receipt, credit note, or debit note is issued;
2. The date full or partial payment is received; or
3. The third day following the completion of the service.

Consequently, transactions billed or fully paid prior to 1 October 2026 will not attract GST, even if the guest’s actual stay or activity takes place after the start date. Conversely, bookings completed after 1 October 2026 will be subject to GST even if the stay commenced prior to the effective date.

Filing Obligations, Record Keeping, and Currency

The reporting frequency depends on the supplier’s total monthly value of supplies. Registered entities generating USD 64,850.84 or more per month must submit GST returns and pay the tax monthly, due by the 28th day of the following month. Entities below this threshold file on a quarterly basis, due by the 28th day of the month following the end of the quarter.

All returns and tax payments must be completed in US Dollars. Transactions in other foreign currencies must be translated using an exchange rate within a ±2 per cent margin of the official rate published by the Maldives Monetary Authority (MMA). Furthermore, registered suppliers must maintain comprehensive records—including contracts, booking confirmations, itineraries, and adjustment documentation—for inspection by MIRA, providing certified English or Dhivehi translations upon request.