Teams from the Maldives Inland Revenue Authority (MIRA) have begun visiting businesses and providing information and assistance regarding the changes to the tax rates. The teams will also visit businesses on January 1 to check whether they are abiding by the changes.
Furthermore, MIRA has published a fact sheet on its website regarding the changes to the tax system that businesses need to adhere to. The fact sheet contains information on the cut-off period and details on how the new tax rates will be implemented. As such, businesses including cafés and restaurants that are not open for 24 hours will have to abide by the new tax rates after opening their business on January 1, 2023. Other businesses will have to abide by the new tax rates at 0000hrs on January 1.
Additionally, MIRA stated that businesses will need to show the price tags of their products with information on the new tax rate from January 1, but businesses that find it difficult can provide information on the price changes to customers. MIRA advised businesses to plan for the upcoming changes to the prices and their internal systems.
The newly ratified Bill on Amendment to the Goods and Services Tax Act will increase Goods and Services Tax (GST) from 6% to 8% and Tourism Goods and Services Tax (TGST) from 12% to 16% on January 1, 2023.