GST and TGST in the Maldives: the basics for small businesses

5 min read · White Sun

Most businesses trading in the Maldives deal with two consumption taxes: GST (Goods and Services Tax), which applies broadly, and TGST (Tourism Goods and Services Tax), which applies to tourism- sector supplies. Getting them right starts with knowing which one applies to a given sale — and at what rate.

Registration

A business registers for GST once its taxable turnover crosses the threshold set by MIRA. Businesses operating in the tourism sector — resorts, guesthouses, liveaboards, tourism-related transport and similar — register for TGST instead of, or alongside, GST for the relevant supplies. The exact thresholds and categories are set by MIRA and do change, so registration status should always be checked against the current rules rather than assumed from a business's general trade.

Why the rate depends on the date

Both GST and TGST rates have changed over time as regulations were updated. A return covering a past period has to use the rate that was in force on the date of each sale, not today’s rate. This is why accounting software that hard-codes a single rate gets it wrong the moment a rate changes — the rate needs to be a lookup against the date of the transaction, not a constant.

What this means for record-keeping

• Record the tax rate that applied on each invoice’s date, not the current rate.
• Keep GST and TGST separate in your books — they are reported differently.
• Reconcile what you report against what was actually invoiced, not an estimate.

This is general information, not tax advice — always confirm current registration thresholds and rates with MIRA or a qualified advisor before filing.