The Maldives could remove its 17% Goods and Services Tax (GST) on tourism products sold by foreign travel agencies and tour operators, following the publication of an amendment Bill to the country’s Goods and Services Tax Act.
According to the Association of British Travel Agents, the proposed changes would scrap the tax on inbound tourism products supplied by foreign operators without a fixed establishment in the Maldives. The Bill also provides refunds of any taxes collected under the rule since its introduction in October.
Initially expected to take effect on October 1, the new regulations offered little clarity on how the tax would apply to South African travel agents and tour operators. In September, ASATA submitted a formal objection, setting out the practical and legal challenges the new rules create for South African tour operators and travel agents.
