- MIRA's new guide clarifies how the expanded 17 percent tourism GST applies to inbound tourism products and related booking or agency services from 1 October 2026.
- Foreign resellers, tour operators, travel agents, online travel agencies, bed banks and booking platforms must register under the tourism GST sector, with no minimum turnover threshold.
- For overseas resellers, GST is calculated on the tax-exclusive margin between the customer price and the amount paid to a GST-registered supplier, divided by 1.17.
The Maldives Inland Revenue Authority (MIRA) has published a guide explaining how the country’s expanded Goods and Services Tax regime will apply to inbound tourism products and related booking or agency services from 1 October 2026.
The rules bring overseas businesses selling or arranging Maldives tourism products within the tourism GST sector. This includes businesses selling directly to travellers as well as those supplying products or services to other tourism businesses.
Here is what businesses need to know.
What is considered an inbound tourism product?
An inbound tourism product covers accommodation, meals, transport and other tourist activities provided in the Maldives by a person without a fixed place of business in the country.
Tourist activities can include excursions, sightseeing tours, diving, snorkelling, water sports, fishing trips, spa and wellness services, cultural tours and similar experiences undertaken in the Maldives.
Services delivered outside the Maldives, such as international flights and overseas transit accommodation, do not fall within this definition.
Who must register for GST?
Businesses selling or reselling inbound tourism products, along with those providing related booking or agency services, must register under the Maldives GST regime.
The requirement can apply to foreign tour operators, foreign travel agents, online travel agencies, bed banks, accommodation wholesalers, destination management companies, charter operators and booking platforms.
It applies whether the tourism product is supplied to the final customer or to another supplier of inbound tourism products. There is no minimum turnover threshold for registration.
Registered businesses will be placed in the tourism GST sector and issued a GST Registration Certificate by MIRA.
What GST rate applies?
Inbound tourism products and related booking or agency services are subject to the tourism GST rate of 17 percent.
However, the amount on which GST is calculated depends on whether the business is reselling a tourism product or providing a booking or agency service.
How is GST calculated for a tourism reseller?
For an overseas reseller without a fixed place of business in the Maldives, GST is effectively calculated on the tax-exclusive margin earned from the inbound tourism product.
The amount received from the customer for the product is reduced by the amount paid to a GST-registered supplier for that product. The resulting margin is then divided by 1.17 to determine the taxable value.
For example, MIRA considers a tour operator purchasing a resort package for USD 2,457 and reselling it for USD 3,194.10. The difference of USD 737.10 includes GST. The taxable value is USD 630, producing GST payable of USD 107.10.
If the amount paid to the GST-registered supplier exceeds the amount received, the difference is treated as zero.
What if the package includes international flights or overseas accommodation?
Amounts relating to services outside the definition of an inbound tourism product must be excluded from the calculation.
This includes both the cost of those services and any portion of the reseller’s margin attributable to them. Businesses will therefore need records showing how the total package price has been allocated between Maldives tourism services and other components.
How is GST calculated for booking and agency services?
Where a business does not resell the tourism product but charges a separate booking fee, commission or agency fee, GST applies to the tax-exclusive value of that charge.
MIRA provides the example of a travel agent arranging a resort booking while the guest pays USD 2,000 directly to the resort. If the agent charges the guest a separate booking fee of USD 117, the taxable value is USD 100 and the GST payable is USD 17.
Do the rules apply to bookings made before 1 October?
The booking date or travel date alone does not determine whether GST applies. The deciding factor is the time of supply.
The time of supply is the earliest of:
- The issue of a tax invoice, receipt, credit note or debit note
- Receipt of full or partial payment
- The third day after the service is completed
A booking agreed before 1 October may therefore be taxable if its time of supply occurs on or after that date.
Conversely, a stay taking place after 1 October will not fall under the new rules if an invoice was issued or payment was received before the effective date.
How often must businesses file GST returns?
Businesses with a monthly value of supplies of USD 64,850.84 or more will have a monthly taxable period. Their GST return and payment will be due by the 28th day of the following month.
Businesses below that amount will generally have a quarterly taxable period. Their return and payment will be due by the 28th day of the month following the end of the quarter.
What records must businesses maintain?
Businesses must keep enough documentation for MIRA to verify the time of supply, taxable value and GST accounted for on each transaction.
Relevant records include agreements with Maldivian tourist establishments and other resellers, booking confirmations, itineraries, reservation and ticketing records, and documents relating to refunds, cancellations, amendments and adjustments.
Where a package contains services that are not inbound tourism products, the supplier must also retain documentation supporting their exclusion from the GST calculation.
Documents maintained in languages other than English or Dhivehi must be officially translated into one of those languages if requested by MIRA.
In what currency must GST be reported and paid?
GST returns and payments must be made in USD.
Transactions conducted in other currencies must be converted into USD using a rate within two percent of the Maldives Monetary Authority’s published exchange rate applicable at the time of supply.
Businesses must apply their chosen exchange-rate source consistently. If MMA has not published a rate for a particular date, the most recent rate published before that date must be used.
