Maldives to Implement 17% Tourism GST from 1 July 2025
The Tourism Goods and Services Tax (TGST) rate in the Maldives will rise from 16% to 17%, effective from 1 July 2025. This adjustment, part of the 7th amendment to the Goods and Services Tax Act, has been confirmed by the Maldives Inland Revenue Authority (MIRA) and is designed to support the continued growth and sustainability of the Maldives’ vibrant tourism sector, which is a cornerstone of the national economy.
Starting 1 July 2025, the new 17% TGST rate will apply to all transactions where the “time of supply” occurs on or after this date. The “time of supply” is determined by the earlier of the date an invoice is issued or when payment is received. This ensures clarity and consistency for businesses handling bookings and payments made before the rate adjustment.
Tourism businesses, including resorts, guesthouses, restaurants, spas, and dive schools, will need to apply the new TGST rate from 1 July 2025. Businesses operating 24/7 should begin applying the new rate from midnight on the effective date, while others can start from their first operational hour on the same day. To ensure a seamless transition, businesses are encouraged to update their systems—such as point-of-sale (POS) platforms, reservation systems, and billing processes—by 1 July 2025. This will help ensure that tourism-related goods and services reflect the updated TGST rate, maintaining a smooth customer experience.
MIRA has provided examples to help businesses understand how the “time of supply” principle will apply during the rate change:
Tourism businesses are encouraged to prepare ahead of time to ensure smooth compliance with the new TGST rate. Early adjustments will help avoid any disruptions and ensure that businesses continue to deliver exceptional experiences for visitors. This adjustment offers an opportunity to further enhance the Maldives’ tourism sector, reinforcing the country’s position as a leading global destination. The transition to the new TGST rate is expected to be a positive move, supporting the long-term sustainability and growth of tourism in the Maldives.
The increase in the TGST rate reflects the Maldives’ ongoing commitment to strengthening its tourism infrastructure. By maintaining a transparent and consistent tax system, the country is ensuring its competitiveness and appeal as a top destination for global travellers. With its stunning natural beauty, world-class hospitality, and focus on sustainability, the Maldives remains a premier choice for those seeking a memorable and unique holiday experience. The successful implementation of these changes will further solidify the Maldives’ position as a leader in the global tourism market.
