Maldives: Bill would reverse GST on offshore tour operators and booking platforms
The bill would repeal the recently introduced GST treatment of offshore inbound tourism suppliers and provide refunds of GST collected since October 1, 2026.
The Maldives government on October 19, 2026, submitted to the People’s Majlis a bill to amend the Goods and Services Tax Act (Law No. 10/2011) that would remove GST on inbound tourism products supplied by persons with no fixed place of business in the Maldives. The bill would also refund GST collected from these suppliers since October 1, 2026, and introduce a new GST anti-avoidance provision.
Background
Under changes that became effective October 1, 2026, foreign tour operators, online travel agents, and offshore booking platforms without a fixed place of business in the Maldives became subject to GST on supplies of inbound tourism products. The new bill would reverse that treatment.
Proposed changes
The bill would:
- Repeal offshore tourism GST: Seven provisions would be repealed, with tour operators, travel agents, and booking platforms that have no fixed place of business in the Maldives no longer subject to GST on Maldives tourism supplies
- Refund GST collected since October 1: GST collected on these supplies from October 1, 2026, until the changes become effective would be refunded. The bill does not specify who would make the refund or how the refund would be claimed
- Introduce an anti-avoidance provision: New section 63-1 would allow the Commissioner General to disregard a transaction, treat a transaction as a different transaction, and adjust the GST of affected persons when the main purpose of the transaction is to obtain a GST benefit
- Address valuation of services: New section 19(d)(5) would provide for services supplied by persons other than related parties to be valued under the GST regulation
- Expand information-gathering authority: The Maldives Inland Revenue Authority (MIRA) could request information from registered businesses concerning travel agents required to register under section 59-1
The Ministry of Finance estimates that MVR 1,608.5 million in GST revenue would not be collected as a result of the proposed repeal.
The bill had not been enacted as of October 20, 2026. The amendments would become effective upon ratification by the president and publication in the government gazette.
For more information, contact a KPMG tax professional:
Philippe Stephanny | philippestephanny@kpmg.com
Calistus Eugene | ceugene@kpmg.com
Ali Muaaz | amuaaz@kpmg.com