Travel companies selling travel to the Maldives are advised to ‘prepare to register’ to pay the new tourism tax by 30 October, even though the introduction might be delayed until next year.
The Maldives Government announced on 11 September that it was extending the Goods and Services Tax to overseas tour operators and travel agents on 1 October. Firms required to pay the tax must register with the Maldives tax authority.
Following lobbying from ABTA and other international travel associations, it’s been reported that the Government announced on 3 October that the extension to overseas travel companies would be delayed until April 2027.
However, Naomi Quant, Indirect Tax Director at travel accountants Xeinadin, said: “We have been unable to verify these reports from the Maldivian authorities, and accounting firms in the region are advising that operators need to prepare for registration by 30 October 2026, until there is official confirmation of the delay and a change to the legislation.”
Speaking at the ABTA Travel Convention in Madeira, ABTA Director of Public Affairs Luke Petherbridge said it was his understanding the tax has been postponed until 1 April 2027.
He added that the UK Government has confirmed ‘it has heard it is not being enforced’ and the Maldives authorities are ‘considering what is the best mechanism to proceed’.
However, ABTA has still not received official confirmation from the Maldives Government, said Luke.
“They clearly listened [to the lobbying] but there has not been any active dialogue. There needs to be a discussion.”
EasyJet holidays CEO Garry Wilson said it was ‘unfair’ of destinations that have ‘built enormous positions’ to ‘pull up the bridges’ by adding taxes. He said this ‘goes back to the days of travel being only for the rich’.
Garry pointed out that holidaymakers already pay multiple taxes, including Air Passenger Duty, however, he said that if the money is spent on tourism infrastructure, they ‘might be easier to swallow’.
ABTA Chief Executive Mark Tanzer agreed: “It is becoming more widespread; it is becoming more and more normal for destinations, even the UK now has the ability to introduce a tourism tax,” he said, adding: “The Maldives tax came out of nowhere.
“It is what destinations do with the taxes. If they can show that the money raised is going back into tourism infrastructure or, at the very least, is going back to residents, that is probably the way to go.”
How will the Maldives tourism tax work?
As it stands, holidays already booked and paid for will not be affected, said Naomi.
“The time of supply will be deemed to be when the booking is paid for.”
Currently, any holidays booked with a deposit paid from 1 October 2026 (or 1 April 2027 if it is postponed) will be within the scope, she said.
The 17% tax will apply to the margin – or, in the case of travel agents, commission – on any tourism-related service that takes place in the Maldives. This will include accommodation, internal flights, transfers and tours, but not international flights.
The tax also applies to any booking fees for holidays in the Maldives where the overseas supplier acts as an agent rather than a principal, added Naomi.
In addition to requesting a delay to the tax, ABTA has called for agents who act on behalf of a named tour operator to be exempt from the tax.
