ABTA, the UK travel association, has released a statement regarding new tax rules introduced by the Maldives government. The rules affect the Goods and Services Act and have implications for UK travel companies and hospitality providers.
The Maldivian government published an amendment Bill to the Goods and Services Act on 19 October. Once adopted, the legislation will remove suppliers without a physical premises in the Maldives from the scope of the Act.
ABTA Director of Public Affairs Luke Petherbridge welcomed the legislation, noting that ABTA worked with international partners to raise concerns and seek a solution. He stated that ABTA will continue to follow up with Maldivian authorities for updated guidance on remaining obligations.
The new tax on overseas travel businesses has been postponed until April 2027, giving UK travel companies time to review their booking processes and ensure compliance with updated local tax requirements.
