The amendment to the Tourism Goods and Service Tax (TGST) rate in the Maldives came into effect from Tuesday.
Maldives Inland Revenue Authority (MIRA) has reminded tourism establishments that the TGST rate will increase from 16 percent to 17 percent starting 1 July following the seventh amendment to the Goods and Services Tax Act.
The new rate applies to all transactions where the “time of supply” occurs on or after this date, MIRA said, advising businesses to update their systems accordingly.
If the tourism GST registered entity is a 24-hour business, MIRA said that GST will be levied at the rate of 16 percent on the value of tourism goods and services supplied before midnight on 1 July.
GST on tourism goods and services provided on or after midnight of 1 July will be levied at the rate of 17 percent, it added.
This marginal tax hike is projected to generate an extra USD 13.2 million for the Maldives.