The Maldives has introduced significant changes to its Goods and Services Tax regime through the 8th Amendment to the Goods and Services Tax Act, ratified on 31 August 2026. The changes are particularly important for foreign tourism businesses, online booking platforms and investors involved in long-term resort villa arrangements.

Foreign Tourism Businesses Brought Into Maldives GST System

A central feature of the amendment is the introduction of the destination principle, under which GST is imposed where the final consumption of goods or services takes place.

From 1 October 2026, offshore booking platforms, foreign tour operators and overseas travel agencies may therefore be required to charge 17% Tourism GST (TGST) when supplying or arranging Maldivian tourism products, even where they have no physical presence in the Maldives. “Inbound tourism products” include accommodation, food, transportation and other tourist activities in the Maldives, together with related agency and booking services.

GST on these tourism products will be calculated on a margin basis, with no input tax deduction:

GST = (Amount received − amount paid to a GST-registered person in connection with the product) × 17%.

Affected suppliers already carrying out taxable activities must apply for registration within 30 days of the amendment taking effect, while new suppliers must register within 30 days of starting taxable activities. MIRA has also been given authority to obtain information from other registered parties to enforce these registration requirements.

Long-Term Strata Villa Leases Now Subject to GST

The amendment also changes the legal definitions of “goods” and “services.” Goods are now defined as tangible movable and immovable goods, while services broadly cover anything that is not goods, except money. Intangible rights may consequently be treated as services for GST purposes.

An important result for property investors is that long-term leases of villas under strata title are now subject to GST. This is particularly relevant to foreign buyers and investors acquiring long-term interests in resort or branded residences in the Maldives.

Tourism GST Definition Changed Following Supreme Court Case

The amendment also changes how a supply is classified as a tourism good or service. A supply no longer has to be one ordinarily provided to customers of a tourist establishment.

The change appears intended to address and effectively reverse the effect of the Supreme Court’s decision in Maldives Bay Private Limited v MIRA Maldives [2023] SC 12.

New GST Exemptions

The amendment introduces an exemption for goods and services supplied to State offices, State-owned companies and companies in which the State holds shares, where the supply forms part of a project financed under a loan or grant agreement with a foreign government, foreign financial institution or international organisation and that agreement specifically provides for GST exemption.

Licensed waste management services are also exempt from GST.

Wider Compliance Changes

The legislation also makes technical and procedural changes relating to GST registration and deregistration, record keeping and other compliance requirements. Certain rules previously contained in the GST Regulations, including provisions dealing with the time of supply and chartering of tourist vessels, have now been incorporated into the Act itself.

Most of the amendments took effect on 31 August 2026, while the new rules concerning inbound tourism products will apply from 1 October 2026.

Businesses affected by the reforms, particularly foreign booking platforms, tour operators, travel agencies and parties entering into long-term strata villa arrangements, should review their GST registration, pricing, contracts, systems and compliance procedures in light of the new rules.