President ratifies 8th amendment to GST Act, enabling collection of taxes from tourism products offered through booking platforms and travel agents
31 އޯގަސްޓު 2026 | ހޯމަ 18:23Following recent amendments to the Goods and Services Tax Act, the Maldives will impose a 17 percent Tourism Goods and Services Tax (TGST) on services provided by foreign booking platforms and travel agents. Scheduled to take effect on October 1, 2026, the measure aims to strengthen the national tax framework and ensure the effective implementation of the destination principle for international service providers.
President Dr. Mohamed Muizzu has ratified the eighth amendment to the Goods and Services Tax (GST) Act. | Presidents Office
President Dr. Mohamed Muizzu has ratified the 8th amendment to the Goods and Services Tax Act (Law No. 10/2011). The President signed the bill into law during a special ceremony held at the President's Office on Monday.
The bill was passed by the 20th People's Majlis during the 27th sitting of its second session for the year 2026, held on August 23, 2026.
The primary objective of this amendment is to establish legal frameworks for levying GST on goods and services provided by offshore booking platforms, foreign tour operators, and travel agents, in line with the implementation of the destination principle in the Maldives. Furthermore, it aims to strengthen the taxation system by addressing existing administrative challenges in the collection of Goods and Services Tax.
The bill defines the specific goods and services provided within the Maldives that are subject to taxation. Under this amendment, the scope of Tourism Goods and Services Tax (T-GST) has been expanded to include inbound products offered by entities without a permanent local establishment, such as accommodation, dining, transportation, and other tourism-related activities.
This amendment aims to impose taxes on tourism products offered through offshore booking platforms and agents. Under this regulation, such goods and services will be taxed at the current tourism sector rate of 17 percent.
The newly introduced tax is scheduled to take effect on October 1, 2026. The relevant authorities have been instructed to draft and publish all necessary new regulations and amendments to existing regulations under this Act in the Government Gazette within 30 days of the law coming into force.
The President has ratified the 8th amendment to the Goods and Services Tax Act. Following its publication in the Government Gazette on Monday, the amendment has now officially come into effect.
