Maldives to Introduce 17% Tourism GST from July 1, 2025

📅 What’s Changing

Starting 1 July 2025, the Maldives will raise its Tourism Goods and Services Tax (TGST) from 16% to 17%. This change follows the 7th amendment to the GST Act and is aimed at supporting the ongoing development and sustainability of the tourism industry, which remains the backbone of the Maldivian economy.

🧾 How It Works

The new 17% rate will apply to all tourism-related goods and services where the “time of supply”—meaning the earlier of the invoice date or the date payment is received—falls on or after 1 July 2025. If either the payment or invoice is issued before this date, the existing 16% rate will still apply.

• For 24/7 businesses like resorts: The updated rate will be effective from 00:00 on 1 July 2025.

• For other establishments: The 17% TGST will apply starting from their first operating hour on the same day.

🛠️ Why It Matters

Tourism service providers—including resorts, guesthouses, hotels, dive centers, spas, and restaurants—must update their systems to reflect the new rate. This includes point-of-sale systems, reservation platforms, and invoicing software. Staff should be trained ahead of time, and communication with guests and partners is encouraged to avoid confusion.

💡 Real-World Example

• A booking made and paid for on 30 June 2025 will still incur 16% GST, even if the actual stay happens after 1 July.

• If the invoice or payment is processed on or after 1 July, the 17% GST will apply, no matter when the service is delivered.

🌍 What This Means for the Maldives

This slight increase in TGST is expected to boost government revenue while ensuring that the Maldives continues to invest in sustainable tourism infrastructure and remains competitive in the global travel market. The change reflects a balanced approach—ensuring both economic stability and quality visitor experiences.

✅ What Tourism Operators Should Do

1. Review and update billing systems to incorporate the new 17% rate.

2. Revise displayed prices on menus, brochures, booking platforms, and promotional materials.

3. Train staff to clearly explain the change to guests and partners.

4. Communicate proactively with travel agents, booking platforms, and customers.

In summary: The Maldives will implement a 17% TGST starting 1 July 2025. Tourism operators are advised to act early to ensure a smooth transition, maintain transparency, and continue offering world-class service in one of the world’s most desirable destinations.