On 21 December 2023, the Maldives Inland Revenue Authority (MIRA) announced a ruling under Section 84 of the Tax Administration Act, impacting the Goods and Services Act and the Goods and Services Tax Regulation.
1. Input Tax Date Determination: The ruling specifies that, for Section 37(e) of the Act, setting off input tax is the last day of the taxable period during which the relevant tax invoice was issued.
2. Recipient’s Taxable Period: The taxable period referred to in Paragraph 4 of the ruling is that of the recipient of the goods or services for which the tax invoice is issued.
3. Input Tax Time Frame Limit: Input tax in a tax invoice, issued on or before the date it should have been set off, must be set off within 12 months from that date. Failure to comply disqualifies the input tax for set-off in any subsequent taxable period.
4. Extended Applicability: The ruling asserts that its provisions apply even beyond the initial 12-month period, including cases of amending a GST return for a period before the expiry of the 12-month timeframe and filing a new GST return for a period ended before the expiry.
5. Regulatory Compliance: The ruling is subject to Section 46 of the Regulation, ensuring alignment with existing regulatory frameworks.
The ruling will be effective from 1 February 2024.