Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| GST: 6% & TGST: 12% | N/A | Zero-rated (0%) and exempt |
The local names for GST in Maldives are Goods and services tax (GST) & Tourism goods and services tax (TGST)
GST applies to the supply of goods or services made in the Maldives by a taxable person.
TGST applies to the following:
- Goods and services supplied by tourist resorts, tourist hotels, guest houses, picnic islands, tourist vessels and yacht marinas authorized by the Tourism Ministry
- Goods and services supplied by shops, diving schools, spas, water sports facilities and other such places in establishments specified in the law
- Subsection (a)(1)), excluding shops operating exclusively for the employees of such establishments
- Goods and services supplied by travel agency service providers authorized by the tourism ministry
- Goods and services supplied to foreign tourist vessels entering the Maldives by their agents
- Goods and services provided by domestic air transportation service providers to persons other than Maldivian citizens
There are basically 2 GST rates in Maldives:
- Standard VAT rates are GST: 6% & TGST: 12%
Recent developments
For more information about (recent) rate change developments in Maldives, please click HERE.
Standard rates: 6% & 12%
This rate applies for all transactions that take place in Maldives, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of GST).
Zero rate (0%)
- Essential goods specified in the GST Act, such as Rice, Sugar, Flour Note: rice, sugar and flour refer to such goods imported by the State Trading Organization at any given time and sold at controlled prices.
- Other Food: Salt, Milk, Cooking oil, Eggs, Tea leaves, Deep sea fish, reef fish, all types of fish packed in the Maldives, and rihaakuru (fish paste), Vegetables such as potatoes, onions, carrots, cabbage, beans and tomatoes, Ingredients used in making curry paste (cumin, fennel, coriander, turmeric, garlic, ginger, chili, chili powder, cinnamon, cardamom, peppercorn, any other such ingredient), Dhiyaahakuru, coconuts (kaashi, kurun’ba, kurolhi). Carrots, cabbage, beans and tomatoes among vegetables, All kinds of fruits and Bread, buns and faaroshi (rusk)
- Hygiene: Baby diapers & food, Adult diapers,
- Sanitary napkins, tampons, menstrual cups and other such products
- Energy: Cooking gas, Diesel, Petrol
- Export of Goods and services from the Maldives, including goods exported by an export license holder or re-export license holder. Services exported are services provided by a person in the Maldives to a person outside the Maldives and consumed outside the Maldives.
- Goods supplied by duty free shops and services exported by a registered person.
- Sale of a going concern. The disposal of a going concern shall be a zero-rated supply if the purchaser of the business is registered with the MIRA under the GST Act or the purpose of the disposal transaction is to transfer the ownership of a business owned by an individual or individuals to a company at least 99% of the share capital of which is held by the same individual or individuals.
Exempt supplies of goods and services
“Exempt supplies” refers to supplies of goods and services not liable to GST and without the right to dedcut input VAT.
- Electricity service
- Water facilities
- Postal service (not including courier services)
- Sewerage facilities
- Education
- Health services, Medical devices and drugs
- Financial services
- Rent earned from lease of immovable property
- International transportation services
- Payments collected as fines
- Day care services provided by day care centers registered with the relevant Government authority or State institution
- Flats, land and buildings sold by the Government or by the Government through a third party under social housing schemes in which the Government has the discretion to control the price of the property being sold Option to tax for exempt supplies. The option to tax exempt supplies is not available in the Maldives.
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on September 3, 2021.
