The Maldivian government has introduced an amendment to the Goods and Services Act, aiming to repeal the Goods and Services Tax (GST) on inbound tourism products supplied by foreign operators without a fixed establishment in the Maldives. This change, once passed, will take effect retroactively from 1 October 2026. The amendment also mandates refunds for any GST collected under this rule since that date and introduces a new anti-avoidance rule to target artificial tax arrangements.
Luke Petherbridge, Director of Public Affairs at ABTA – The Travel Association, expressed support for the legislative move, stating, “We welcome the legislation brought forward in the Maldivian parliament on 19 October, which, once adopted, will remove suppliers without a physical premises from the scope of the Maldives Goods and Services Act.”
ABTA has been actively involved in discussions with global partners, including the World Travel Agents Associations Alliance (WTAAA) and the European Travel Agents' and Tour Operators' Associations (ECTAA), to address concerns and seek solutions regarding the GST issue. Petherbridge added that ABTA will continue to engage with Maldivian authorities to ensure clear guidance on compliance with the new anti-avoidance mechanisms.
The amendment is expected to impact foreign tourism operators by alleviating tax burdens and encouraging more inbound tourism activities in the Maldives. The focus now shifts to ensuring that all stakeholders understand and comply with the updated regulations once they are in place.
This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.
