The Maldives Inland Revenue Authority (MIRA) has opened registration for foreign service providers operating in the Maldivian tourism sector that are required to register for Goods and Services Tax (GST).
The law provides for the collection of GST under the destination principle from 1 October.
Under the latest amendment to the Goods and Services Tax Act, overseas booking platforms, foreign tour operators and travel agents must pay GST on services supplied in the Maldives. MIRA has begun implementing the law and said in a circular issued in connection with the changes that GST registration is now open.
MIRA said the law considers travel to the Maldives, food and beverage services arranged for tourists in the country, and services for arranging accommodation as services supplied in the Maldives. Foreign entities providing any of these services must therefore pay GST even if they are registered and operate overseas.
The authority has also clarified the categories of service providers required to register for GST. However, MIRA noted that the requirement may extend beyond the categories it has listed to other parties providing such services in the Maldives.
MIRA identified foreign tour operators, foreign travel agents, online travel agencies, bed banks, accommodation wholesalers, destination management companies, charter operators and other parties such as booking platforms among the service providers required to register for GST.
The authority said the requirement also covers agencies and booking service providers connected with domestic tourism products. These include online travel agents, booking platforms and other parties that facilitate the provision of inbound tourism products.
MIRA has opened GST registration to the eight categories of foreign service providers and said they must complete the registration process through its portal. The portal is currently accessible through MIRA's website.
Once an entity registers, MIRA will issue a certificate containing the GST Taxpayer Identification Number (TIN) required for GST payments. The authority will also create a MIRAconnect account for the entity, allowing it to carry out GST-related procedures.
MIRA has also published a guide on its website explaining every stage of the registration process.
The authority said it has introduced a dedicated email address for foreign entities registering for GST and will use it to respond to questions and concerns relating to the matter.
Foreign entities can contact MIRA regarding GST registration at [email protected].