Government gazettes 12 percent GST regulation for tourism sector

The regulation detailing the changes to the rate of Goods and Services tax (GST) for the tourism sector starting from 1st November has been gazetted.

According to the regulation released by Maldives Inland Revenue Authority (MIRA) last Thursday; there would be changes in the procedure of GST payment due to the change in the tax rate.

MIRA said that because there is change in tax rate from 1st November, there would be changes in time of GST payment. For example; although a service was started to a customer from October and if the payment is made in November; GST must be charged at the rate of 12%, irrespective of the fact that part of the services supplied were provided in October.

The regulation also stated that if a registered person supplies goods and services on a 24-hour basis, the rate of tax applicable to the value of supplies made before 00:00 hours on 1st November 2014 shall be 8 percent and the rate of tax applicable to the value of supplies made on or after 00:00 hours on 1st November 2014 shall be 12 percent.

MIRA said that registered persons, who adopt a three-month taxable period, need to submit their GST before 28th January 2015 with the change in rate GST.