Maldives confirms tax for foreign agencies: implementation begins tomorrow
What we have on the Tragento portal announced on August 20th Now it has also been officially confirmed. From October 1, 2026. The Maldives are expanding the application of the GST to foreign companies that sell or mediate the sale of tourism-related products in the Maldives.
The new rules cover inbound tourism products, but also related booking and agency services provided by foreign entities. In other words, the fact that a tour operator, agency or booking platform is located outside the Maldives does not in itself mean that it is beyond the reach of the Maldives’ GST system.
For travel agencies and tour operators who sell the Maldives, the change is not just administrative. It will also affect the way in which purchase and sale prices, margins, or RUC, and individual parts of the tourism package are recorded.
Registration without a minimum threshold
One of the more important elements of the new rules is the fact that MIRA, the Maldivian tax authority, does not set a minimum threshold for registration for this category of foreign suppliers.
The obligation applies to sellers and resellers of Maldivian tourist products, as well as to providers of booking and agency services.
Among other things, the official instructions state that foreign tour operators, travel agencies, OTA platforms, bed banks, accommodation wholesalers, DMC agencies, charter operators and booking platforms.
Registration is done through a form MIRA 120 – GST Registration, Overseas Suppliers. After the registration is completed, MIRA assigns a GST TIN to the foreign supplier and opens a MIRAconnect account through which tax returns will be submitted and payments made.
Official information is available at the following links:
- Registration of foreign suppliers – MIRA 120
- Instructions for filling out the MIRA 120 form
- GST Guide – Inbound Tourism Products and Related Booking or Agency Services
For additional questions, MIRA has also opened a special address. internationalhelpdesk@mira.gov.mv.
In resale, the GST is calculated based on the difference in price
It is particularly important for classic tour operators and travel agencies that MIRA has further clarified the way taxes are calculated when operating at net prices.
When a foreign entity purchases an inbound tourism product from a GST-registered supplier in the Maldives and then resells it to its customer, it is essentially being observed the difference between the selling price and the amount paid to the Maldivian supplier.
An important detail is that this difference is considered to be an amount that already includes the GST.
MIRA explains this in its instructions with a concrete example. The package was purchased for 2,457 USD, and then sold for 3,194.10 USD. The difference between the purchase price and the selling price is 737.10 USD. After deducting the GST, the tax base amounts to 630 USD, while the GST liability is 107.10 USD.
In the case of a classic booking or agency fee, the situation is simpler because the tax is calculated on the amount of the fee itself.
This part of the new rules is particularly important for agencies from the Croatian and other European markets. It is no longer enough to simply check whether there is a registration obligation. It will be necessary to monitor more closely net purchase price, final selling price and the difference in price realized, But it is also important to clearly separate the parts of the arrangement that are not considered an inbound tourism product under the Maldivian rules.
This can become particularly important in complex arrangements where, for example, accommodation in the Maldives is combined with international transport or other services not provided in the Maldives.
Travel after October 1 does not automatically mean a new tax obligation
The travel date is not the only criterion that determines whether the new rules apply to a specific booking.
MIRA calls for the so-called transition period “time of supply”, That is, the moment of the creation of the tax obligation. The earliest of several events is relevant: the issuance of an invoice or confirmation, the receipt of a full or partial payment, or the third day after the service was rendered.
This means that the passenger can travel to the Maldives after October 1 without the new rules applying to their reservation.
If the account has been issued or a full or partial payment has been received before October 1, 2026., According to MIRA’s instructions, the new rules will not generally apply to this transaction.
For agencies that already have a large number of confirmed winter reservations, checking the date of invoices and payments will therefore be one of the first practical steps.
Agencies were left with very little time to adapt
The problem for international tourist distribution is not only the content of the new rules but also the moment in which they were finally defined.
The final amendment to the GST regulations has been published September 21, Just ten days before implementation begins. MIRA is holding an additional information session for foreign suppliers on September 30, while one of the sessions is scheduled for October 2 – that is, after the new rules have already come into effect.
For a tax change that may require changes to international agreements, accounting systems, sales procedures, and tax filings, this is a particularly short period for adjustment.
The situation is further complicated by the fact that tour operators do not operate according to a single universal model. One agency may work under net contracts, another on a commission basis, while a third creates dynamic packages that combine Maldivian and non-Maldivian services.
In each of these cases, it will be necessary to properly determine which portion of the income falls within the Maldivian tax base.
The biggest question will only be revealed in practice
MIRA requires tax payers to keep documentation that can be used to determine the purchase and sales values, contracts, booking confirmations, and other records necessary to verify the tax base.
On paper, the tax model is therefore fairly clearly set up.
In international distribution, however, the very practical question of implementation remains.
In what way will the Maldivian tax authorities verify the actual amount that, for example, a Croatian or any other European travel agency has charged to its traveler outside of the Maldives, and on the basis of that, verify the actual difference in price incurred?
The implementation of this part of the regulations could very well be one of the most interesting topics after the new rules come into effect on October 1st.
