Parliament passes bill to impose GST on foreign tour operators and booking platforms

Parliament on Sunday passed a bill to impose GST on services provided by foreign tour operators and offshore booking platforms.

The amendment to the Value Added Tax Act, moved by PNC MP Mohamed Dawood, was passed with 54 votes in favour out of 56 members present. Two members voted against.

The bill aims to specify in law the services and procedures applicable to offshore booking platforms, foreign tour operators and overseas travel agents, in order to implement the Destination Principle in the Maldives.

The amendment proposes to include inbound tourism services provided by persons who do not have a permanent place of business in the Maldives. It also requires businesses registered as tourism service providers to issue tax invoices within three days of supplying services.

According to the cost estimate submitted with the bill, the state is expected to receive MVR 1.61 billion annually if the amendment becomes law.