On 11 September 2026, MIRA published a circular mandating the registration of all suppliers providing inbound tourism products and related booking or agency services under the Tourism Goods and Services Tax (TGST) regime. This measure broadens the tax base by capturing revenue from intermediary service providers—such as online travel agents, tour operators, and activity booking platforms—that facilitate tourism consumption in the Maldives but previously operated without formal TGST registration. The circular invokes Sections 12 and 15 of the TGST Act, defining “inbound tourism products” to include accommodation, transportation, excursions, and wellness packages sold to non-resident visitors. Entities must register via MIRAconnect within 30 days of the circular date, with retrospective effect for supplies made since 1 January 2026.
Key Takeaways
- Expanded Registration Threshold: The previous MVR 1 million annual turnover threshold for TGST registration is waived for inbound tourism suppliers; registration is now compulsory regardless of turnover, ensuring even small niche operators enter the tax net.
- Joint Liability for Platforms: Digital platforms that aggregate and sell inbound tourism products are jointly liable for TGST collection and remittance if their partnered suppliers fail to register, incentivizing platform-level compliance monitoring.
- Transitional Relief Measures: Suppliers registering by 31 October 2026 will receive a 50% penalty waiver for late registration and a deferred payment plan for retrospective tax liabilities, provided full disclosure is made in the inaugural return.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement