Government implements GST on foreign agents amid industry pushback

The state tax authority, MIRA, on Thursday began levying GST on offshore booking platforms and foreign tour operators, despite repeated concerns raised over the recent amendment to the Goods and Services Tax Act.

Last month, MIRA opened registration for inbound tourism suppliers in line with the Eighth Amendment to the GST Act. In its statement on Thursday, the authority confirmed that GST will now apply to inbound tourism products supplied by overseas entities.

The Travel Agents Association of Maldives (MATATO) and several associations representing European tour operators had asked the government and MIRA to postpone implementation.

MATATO said the travel industry was not consulted when the changes were drafted, and warned that compulsory GST registration for all foreign agents without permanent residence in the Maldives would be difficult to enforce. The association also said the responsibility of educating thousands of foreign agents on Maldivian tax rules cannot be placed on local operators.

Pursuant to the 8th Amendment to the GST Act, GST will apply to Inbound Tourism Products supplied by overseas suppliers from today. Businesses are encouraged to ensure compliance with the new requirements.
To read more click on the below link:https://t.co/6yKk1B1syq... pic.twitter.com/2bPa49NgXG

— Maldives Inland Revenue Authority (@MIRAmaldives) October 1, 2026

MATATO noted that Maldivian small and medium enterprises (SMEs) would be the first to suffer, as reduced promotion by foreign agents could shift business to competing destinations.

In a letter signed by Pier Ezhaya, President of ASTOI Confindustria Viaggi, the Italian association representing national tour operators, the group said the Italian market, which sends more than 200,000 tourists to the Maldives annually, is critical for Maldivian tourism. 

ASTOI urged the government to reconsider or amend the provisions extending GST to non-resident suppliers, and to defer implementation until a comprehensive compliance framework is established.

Meanwhile, French associations Les Entreprises du Voyage (EDV) and Syndicat des Entreprises du Tour Operating (SETO) sent a joint letter to Commissioner General of Taxation Fathimath Ameeza, requesting that the changes be postponed until 2027 to allow adequate time for consultation and system adjustments.