The Maldives Tax on Overseas Booking Sites Just Got Six Months of Grace

Overwater villas over a turquoise lagoon in the Maldives

The Maldives has delayed a 17 percent tourism goods and services tax that would apply to booking services and tourism products sold by foreign tour operators, travel agencies and offshore booking platforms with no fixed place of business in the country. It was due to start October 1, 2026 and now begins April 1, 2027. Tourism minister Mohamed Amin announced the change during National Tourism Day celebrations.

The tax requires affected overseas suppliers to register for GST in the tourism sector. Industry groups had warned that operators would either absorb the cost or pass it on to travelers, which could make Maldives holidays more expensive just as the country prepares for its Visit Maldives Year 2027 campaign.

The government has estimated the measure could raise an additional MVR 1.6 billion, about 104 million dollars. That revenue goal is part of why the tax drew so much attention in travel trade circles, and why the delay is being watched closely.

Reaction has been mixed. Stakeholders welcomed the postponement, but several international associations want formal confirmation and implementation details. The Outbound Tour Operators Association of India called for a policy review, and ABTA said earlier this month that uncertainty remained because the legislation had already taken effect. For now, the practical advice is to expect pricing guidance to keep shifting.

Sources: Travel Weekly, ABTA

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