Committee backs repeal of foreign tour operator GST, higher registration threshold

Parliament’s Economic Affairs Committee has approved amendments to repeal the recently introduced GST requirement on foreign tour operators and raise the mandatory GST registration threshold for businesses from MVR 1 million to MVR 1.5 million.

The changes were approved by the committee on Sunday as part of amendments to the Goods and Services Tax Act.

Under the proposed changes, the MVR 1 million annual turnover threshold for mandatory GST registration will remain in place until the end of 2026. From 1 January 2027, businesses will be required to register for GST when the value of taxable goods and services supplied exceeds MVR 1.5 million.

The committee also approved provisions allowing businesses already registered for GST to apply for deregistration where the value of goods and services supplied during the previous 12 months is below MVR 750,000 and is expected to remain below that level over the following 12 months.

The bill also seeks to reverse provisions introduced earlier this year requiring foreign tour operators, travel agencies and booking service providers without a fixed place of business in the Maldives to register for and pay GST on inbound tourism products and related services.

Those provisions came into effect on 1 October 2026 and brought inbound tourism products, including accommodation, meals, transport and other tourist activities supplied by overseas businesses, within the Maldives’ tourism GST framework.

The government subsequently moved to reverse the requirement following concerns raised by tourism industry stakeholders and overseas tour operators.

The government-sponsored bill is being handled by Kolamaafushi MP Ibrahim Didi and remains at the committee stage of the parliamentary process.