From January 2023, the Tourism Goods and Services Tax (TGST) and GST (Goods and Services Tax) will increase to 16% and 8% respectively. As a result, GST will have to be levied at the new rates on transactions of which the time of supply occurs on or after January 1, 2023.
To prepare for this change, Maldives Inland Revenue Authority (MIRA) has created a ‘fact sheet’ that lists what businesses need to take care of, which is now published it on the MIRA website. The fact sheet includes information such as the ‘cut-off time’ in relation to the GST change, and determining the rate at which GST will be levied.
According to MIRA, with effect from January 1, 2023, the new GST rate must be kept in mind when pricing goods and services. However, those who find it difficult to revise the prices overnight may keep a price fixed before January 1, 2023, and the price to be charged on or after January 1, 2023, in a way that is clear to customers.
The government has collected over MVR 5.9 billion in TGST from January to November of this year, including MVR 507.5 million in November.
For more information, have a look at the fact sheet here.