Reference Number: 220-TD/CIR/2022/04
Date: 22 November 2022
To: GST registered persons
Subject: Change of rate of GST on 1 January 2023
Pursuant to the sixth amendment to the Goods and Services Tax Act, the rate of tourism sector
GST and general sector GST will increase to 16% (sixteen percent) and 8% (eight percent),
respectively, from 1 January 2023. To this effect, please be informed that GST must be charged
at the new rates if the “time of supply” of a transaction occurs on or after 1 January 2023.
Please also be advised to take necessary action to bring any system changes beforehand that
may be required to charge GST at the new rates, and to have a ready arrangement to display
the prices of goods and services inclusive of the new rates.
Cut-off times
If a registered person supplies goods and services on a 24-hour basis, the rate of GST applicable
to the value of supplies made before 00:00 hours on 1 January 2023 is 12% (twelve percent)
and 6% (six percent) for tourism sector and general sector, respectively, and the rate of GST
applicable to the value of supplies made on or after 00:00 hours on 1 January 2023 is 16%
(sixteen percent) and 8% (eight percent) for tourism sector and general sector, respectively.
Registered persons other than those stated above are required to apply the rate of GST of 16%
(sixteen percent) and 8% (eight percent) for tourism sector and general sector, respectively, to
the value of supplies made from the time of opening their business on 1 January 2023.
Source: gov.mv
