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GST Amendment Seeks to Tax Foreign Tourism Sales: What the Destination Principle Means for the Maldives
A GST amendment introducing the destination principle was submitted to the People's Majlis on 15 August 2026 by Kulhudhuffushi North MP Mohamed Dawood and, if passed, would take effect on 1 October 2026, requiring foreign sellers of tourism products and services used in the Maldives to pay GST at 17 percent. MIRA estimates the change would raise just over MVR 1.6 billion a year, mostly from foreign tour operators, with much of it arriving in foreign currency.
Sources1carried itMN1 of 19 news outlets we monitor
Figures8as written, with their sentences
One outlet so far Only Maldives News Network has reported this among the sources we monitor. A gap in what we monitor, not proof that others did not report it.
What happened
in order; days are read from the reports' words and dates
Mon 1 JulAustralia removed its rule exempting foreign websites selling Australian hotel rooms from GST registration1 July 2019only Maldives News NetworkAustralia removed it from 1 July 2019, saying openly that a hotel room should carry the same tax whether it is booked through a local company or a foreign one.
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How the reporting differs
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Maldives News NetworkNews outlet
GST Amendment Seeks to Tax Foreign Tourism Sales: What the Destination Principle Means for the Maldives
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Figures in these reports
as written, with the sentence they come from
17 percentTourism GST rateMaldives News NetworkTourism GST is now 17 percent, after rising from 16 percent in July 2025.
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16 percentPrevious tourism GST rateMaldives News NetworkTourism GST is now 17 percent, after rising from 16 percent in July 2025.
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just over MVR 1.6 billionEstimated annual revenue from amendmentMaldives News NetworkMIRA estimates the change will bring in just over MVR 1.6 billion every year.
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MVR 1,309.2 millionRevenue from foreign tour operatorsMaldives News NetworkForeign tour operators are expected to provide most of it, around MVR 1,309.2 million a year.
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MVR 299.3 millionRevenue from overseas travel agentsMaldives News NetworkOverseas travel agents add about MVR 299.3 million more.
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MVR 1,608.5 millionTotal estimated revenueMaldives News NetworkThe total is MVR 1,608.5 million.
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MVR 2.8 millionOne-time setup costMaldives News NetworkMVR 2.8 million once, and about MVR 5.1 million a year to run.
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MVR 5.1 millionAnnual operating costMaldives News NetworkMVR 2.8 million once, and about MVR 5.1 million a year to run.
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Other events named
no clear day, as worded
New Zealand made online platforms responsible for collecting GST on holiday accommodation booked through themApril 2024New ZealandMaldives News NetworkNew Zealand went further in April 2024. It made online platforms responsible for collecting GST on holiday accommodation booked through them.
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Singapore applied GST to digital services from foreign sellers2020SingaporeMaldives News NetworkIt applied GST to digital services from foreign sellers in 2020, and to low value imported goods in 2023.
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Singapore applied GST to low value imported goods2023SingaporeMaldives News NetworkIt applied GST to digital services from foreign sellers in 2020, and to low value imported goods in 2023.
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The European Union began taxing digital services under this approach and closed its low value import loopholesince 2015; loophole closed in 2021European UnionMaldives News NetworkThe European Union has taxed digital services this way since 2015, and closed its own low value import loophole in 2021.
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