Goods and Services Tax (GST) is an important part of the Maldives tax system. It applies to taxable goods and services supplied in the Maldives and is administered by the Maldives Inland Revenue Authority (MIRA).
GST is imposed under the Goods and Services Tax Act and operates through two broad sectors: the tourism sector and the general sector.
In this article
1. What is GST?
GST is a consumption tax charged on taxable goods and services. In general terms, a GST-registered business charges GST on taxable supplies and accounts for the GST collected through its GST return.
GST should therefore not simply be viewed as additional business income. For a registered business, GST collected from customers generally represents a tax amount that must be accounted for with MIRA, subject to the applicable input tax rules.
2. GST sectors
The Maldives GST system distinguishes between tourism goods and services and general goods and services.
Tourism goods and services
This sector includes supplies connected with establishments and activities falling within the tourism sector under the applicable legislation.
General goods and services
The general sector broadly covers goods and services that do not fall within the tourism sector.
3. Current GST rates
From 1 July 2025, the GST rates are 8% for the general sector and 17% for the tourism sector.
| Sector | GST rate |
|---|---|
| General sector | 8% |
| Tourism sector | 17% |
4. GST registration
Whether a person or business is required to register for GST depends on the applicable registration rules and the nature of the activities being carried out.
Registration is important because a business generally needs to be registered before it can charge GST on taxable supplies.
5. Charging GST
A GST-registered business generally charges GST on taxable supplies, subject to the rules applicable to zero-rated and exempt supplies.
Businesses should ensure that their invoices, accounting records and sales systems correctly identify the applicable GST treatment.
6. Input tax
GST-registered businesses may be able to claim eligible GST paid on purchases as input tax, subject to the requirements under the GST regime.
Proper documentation is important. MIRA states that a tax invoice is required when claiming GST paid on purchases, together with the relevant GST return and input tax statement.
7. GST returns
GST-registered businesses are required to file GST returns and account for the GST collected and eligible input tax in accordance with their applicable taxable period.
MIRA provides online GST filing facilities through MIRAconnect, together with relevant GST forms and guidance.
8. Practical considerations for businesses
Determine whether the business is required to register for GST.
Identify whether supplies fall within the general or tourism sector.
Apply the correct GST treatment to each type of supply.
Maintain appropriate tax invoices and supporting records.
Reconcile output tax and input tax regularly.
File GST returns and make payments within the applicable deadlines.
Monitor changes to legislation, regulations and MIRA guidance.
Conclusion
Understanding GST requires more than knowing the applicable tax rate. Businesses need to understand registration, classification of supplies, invoicing, input tax, record keeping and filing obligations.
CURA will continue developing practical resources to help businesses and professionals understand Maldives taxation more clearly.
Disclaimer: This article is provided for general educational and informational purposes only. It does not constitute tax or legal advice. Readers should refer to the applicable legislation, regulations and current guidance issued by the relevant authorities before making decisions.