1. What is TGST?
Tourism Goods and Service Tax (T-GST) is charged on the value of all goods and services consumed by tourists in tourist establishments in the Maldives. The Tourism Goods and Service Tax Act (Law Number 19/2010) will be repealed from 2 October 2011, i.e. from the date of commencement of Goods and Service Tax Act (Law Number 10/2011).
2. What is GST? Goods and Service Tax (GST) is a tax imposed on the value of goods and services supplied by a registered business in the Maldives. GST Act will commence from2 October 2011.
3. Whom / What does
it apply to?
Pursuant to the GST Act, tax is levied on two major categories, they are;
The GST on tourism sector applies to all the goods and services sold in tourist establishments. The tax has to be borne by the tourists consuming the goods and services.
The following goods and services are referred as Tourism Goods and Services;
4. What is the
T-GST is levied at 3.5% as per the T-GST Act.
5. What are the new rates?
|Period||Tourisms goods and services||General goods and services|
|2 October 2011 - 31 December 2011||3.5%||3.5%|
|1 January 2012 - 31 December 2012||6%||6%|
|1 January 2013 onwards||8%||6%|
6. When does it take into effect? The effective date of GST Act will be from 2 October 2011.
7. Will there be any changes to this amount in the future? Any change to the Act can be made by an amendment to the Act passed by the Parliament.
8. How does this affect to the already pre-agreed contracts? Issues in relation to pre-agreed contracts will be addressed in the Regulations made pursuant to the GST Act, which will be published by the end of September 2011.
9. What is happening to bed tax? Tourism Tax (bed tax) will be abolished by the end of 2013.