The Maldives has extended its 17% tourism GST regime to offshore booking platforms, tour operators and travel agents supplying inbound tourism products from 1 October 2026.
The Maldives has expanded the scope of its tourism taxation system, bringing overseas booking platforms, tour operators and travel agents within the country’s 17% tourism GST regime from 1 October 2026. The Maldives tourism tax change applies to inbound tourism products and related agency or booking services supplied by businesses without a fixed place of business in the country.
The measure comes through the Eighth Amendment to the Goods and Services Tax Act. President Dr Mohamed Muizzu ratified the legislation on 31 August 2026 after Parliament approved it on 23 August. The amendment establishes a framework for collecting GST from offshore booking platforms and foreign travel intermediaries under the destination principle.
Importantly, the 17% rate itself is not new. The Maldives increased tourism-sector GST from 16% to 17% on 1 July 2025. The October 2026 change extends that existing rate to specified inbound tourism products and related services supplied from outside the Maldives.
Foreign travel sellers face new registration obligations
The revised rules cover accommodation, meals, transport and other tourism activities in the Maldives. They also apply to agency and booking services connected with those products when supplied by businesses without a fixed place of business in the country. Affected companies must register for GST in the tourism sector.
For international distribution partners, the change introduces new compliance requirements. Overseas tour operators, online travel agencies and other intermediaries may need to review their booking systems, invoicing processes and tax reporting arrangements.
The official legislation applies the tax to qualifying supplies rather than describing it simply as a levy on an intermediary’s profit margin. This distinction is important for travel companies reviewing contracts, pricing structures and settlement arrangements.
MIRA’s regulations also address transactions agreed before implementation. GST does not apply to certain qualifying supplies when an invoice, receipt or tax invoice was issued before 1 October 2026, or when full or partial payment was made before that date.
Travel industry raises concerns over implementation
The change has raised concerns among international travel industry associations. ABTA wrote to the President of the Maldives in September asking the government to postpone enforcement for at least six months and consult more closely with international travel businesses.
ABTA also sought clarification on the position of overseas travel agents acting as disclosed agents for foreign tour operators. The association said limited consultation and implementation time had created practical problems for the international travel trade.
The organisation joined the European Travel Agents’ and Tour Operators’ Associations and the World Travel Agents Associations Alliance in seeking further dialogue. Their concerns centre on how the rules apply across different commercial models and jurisdictions.
For tour operators and online platforms, the immediate challenge is therefore not only the headline 17% rate. Companies must also determine whether they fall within the registration rules, how the tax applies to individual transactions and how they should adapt their accounting and technology systems.
Pricing and distribution models come under review
The Maldives tourism tax change could influence how international sellers structure and price Maldives packages. Companies may choose to absorb some additional compliance or tax costs, incorporate them into package pricing or review their commercial agreements with accommodation providers and other suppliers.
However, the financial effect will depend on each company’s business model and the nature of the supply. The legislation covers both inbound tourism products and associated booking or agency services, making the treatment potentially different across merchant, agency and wholesale arrangements.
The reform also places offshore sellers closer to businesses already operating within the Maldivian tourism tax framework. The government says the amendment aims to strengthen GST administration and apply the destination principle to tourism products sold from outside the country.
Tourism businesses face a new compliance landscape
For the international travel industry, the main operational priority is now compliance. Tour operators, bedbanks, OTAs and other intermediaries selling Maldives products need to assess their registration status and review booking, invoicing and reporting processes.
The change is particularly significant because the Maldives depends heavily on international distribution for its resort and leisure business. As a result, tax treatment can affect contracts across hotels, wholesalers, travel agencies and digital platforms in multiple markets.
With the new rules in effect from 1 October, the Maldives tourism tax framework now reaches further into the international distribution chain. Travel companies selling accommodation and other inbound tourism services will need to follow MIRA guidance closely as implementation develops.