Maldives: Proposed GST reform would extend tax to offshore tour operators and booking platforms

The Maldives government on August 15, 2026, submitted the bill on the Eighth Amendment to the Goods and Services Tax Act (Law No. 10/2011) to the Parliament (People's Majlis), proposing to shift the GST framework from the source-based principle to the destination principle and to bring foreign tour operators (FTOs) and online travel agents (OTAs) into the Maldivian GST net.

Entities in scope

The bill targets nonresident suppliers of inbound tourism products—specifically foreign tour operators, online travel agencies, and offshore booking platforms—irrespective of whether they have a physical presence or establishment in the Maldives.

Transactions covered

In scope are cross-border supplies of "inbound tourism products" (accommodation, food, transportation, and other tourism-related activities conducted in the Maldives), including the commission or margin charged by FTOs/OTAs on such transactions, as well as related agency and booking services.

The bill does not appear to introduce a general nonresident digital services regime. Digital services such as streaming, software, or digital advertising supplied by non-resident providers to Maldivian consumers are not separately brought into scope under this amendment.

Sourcing

• Goods are deemed supplied in the Maldives if transportation commences there, or the supplier makes the goods available to a recipient there.
• Services are deemed supplied in the Maldives if supplied through a fixed place of business there, or—when the recipient is not GST-registered— if physically performed in the Maldives, connected to Maldivian immovable property, or constituting the supply of (or agency/booking service for) an inbound tourism product.

Rates

While the general GST rate is 8%, the Maldives applies a special "tourism GST" T-GST at 17%. Supplies of inbound tourism products by nonresident suppliers without a fixed place of business would thus fall within the T-GST definition, taxable at 17%.

Compliance and reporting

• Registration: Affected FTOs and OTAs must register for GST and account for T-GST at 17% even absent a local establishment, regardless of their gross receipts.
• Margin-based valuation: GST applies only to the margin/commission earned by the foreign supplier, rather than the gross amount paid by the traveler.
• No input tax deduction is available to these nonresident suppliers.

Implementation timeline

The bill was submitted on August 15, 2026, and referred to the Whole House Committee on August 16, 2026 (accepted 72–1). It has not yet been passed—it must clear Parliament, be ratified by the president, and be published in the Government Gazette before taking effect. The proposed effective date is October 1, 2026.

For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Calistus Eugene | ceugene@kpmg.com

Ali Muaaz | amuaaz@kpmg.com