Parliament accepts bill to end tax exemptions for unregistered businesses in Maldives
16 އޯގަސްޓު 2026 | އާދީއްތަ 11:18The People's Majlis has accepted a proposed legislative amendment to impose GST on services provided by foreign tour operators and booking platforms in the Maldives, passing with a majority of 70 votes. The primary objective of this amendment is to enforce the principle of taxation in the jurisdiction where services are consumed, effectively integrating unregistered foreign businesses into the national tax framework.
Mohamed Dawood, Member of Parliament for the Kulhudhuffushi North constituency. | People's Majlis
The People’s Majlis has accepted a proposed amendment to the Goods and Services Tax Act, aimed at ending the exemption that limited taxation to businesses registered only in the Maldives. The bill seeks to broaden the tax base to ensure that GST is levied on all goods and services provided within the country.
During Sunday's People's Majlis session, the government-sponsored bill to amend the Goods and Services Tax (GST) Act was put to a vote. The bill was introduced by Mohamed Dawood, the Member of Parliament for Kulhudhuffushi North. The Majlis accepted the bill for consideration with a majority of 70 members voting in favor.
One member voted against accepting the bill. Following the vote, the bill was referred to the Committee of the Whole House for further review.
The bill proposes to amend existing legal provisions to mandate that GST be levied on all goods and services supplied within the Maldives, rather than only on goods sold in the country. Furthermore, the legislation seeks to revise the current clause which stipulates that GST applies only to goods sold by businesses operating within the Maldives. This amendment aims to remove the current limitation that restricts the application of the tax solely to local businesses.
The primary objective of this bill is to establish a legal framework for levying GST on services provided by offshore booking platforms, foreign tour operators, and travel agents. The bill also states that a key purpose of this amendment is to implement the "destination principle" in the Maldives, a standard practice in global taxation. This principle dictates that services should be taxed in the country where they are consumed or utilized.
The bill defines the specific goods and services provided within the Maldives as part of legislative amendments to introduce taxation on foreign tourism businesses. Additionally, the bill outlines the specific types of business activities that will be subject to these taxes.
Furthermore, the regulations have been amended to include inbound tourism products provided by entities without a permanent place of business in the Maldives under the scope of tourism goods and services. It also provides a detailed definition of "charter" specifically targeting charter trips sold by safari vessels.
