Maldives GST tax will increase again for travelers from January 01 2023. The draft bill, which was submitted in September 2022, was signed by President Ibrahim Mohamed Solih this Tuesday 22 November 2022.
The Maldives government just released a circular about the new increase in tourism sector tax rates. This includes an increase in the standard rate from 6% to 8% and an increase in the rate on the supply of tourism goods and services from 12% to 16%.
The new tax will take effect from January 01st 2023.
The official circular mentions its application as below :
“..GST must be charged at the new rates if the “time of supply” of a transaction occurs on or after 1 January 2023.
..
The rate of GST applicable to the value of supplies made before 00:00 hours on 1 January 2023 is 12% and 6% for tourism sector and general sector, respectively, and the rate of GST applicable to the value of supplies made on or after 00:00 hours on 1 January 2023 is 16% and 8% for tourism sector and general sector, respectively.“
Does this tax increase will affect travelers staying in Maldives between December and January ?
Yes. This tax increase will make a noticeable difference in your holiday budget.
For a stay with overlapping dates between December and January, the December part will be taxed with the current rates of 12% and 6%, until December 31st 2022 and then 16% and 8% for January dates.
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