Switch from source to destination VAT; rise in tourism rate
The Indian Ocean archipelago state of Maldives is switch the basis for determining where Goods and Services Tax (GST) is due and rising the tourism rate on 1 July 2025.
Switching to Destination Principle
GST liability in the Maldives is based on where the customer is based – the origin principal. It is now planning to switch to the global norm of where the supply of the goods or services takes place – the destination principle. In particular, this means that foreign tourism providers and digital platforms will now have to charge Maldivian GST for local services for the first time.
Raising tourism GST to 17%
Simultaneously, the GST Act is being changed to raise the GST rate on tourism services from 16% to 17%.
