Amendment to the Goods and Services Tax Regulation

GST Regulation

The Maldives Inland Revenue Authority has published the 26th Amendment (2020/R-49) to the GST Regulation on 26th June 2020.

Export License

As per the amendment to Section 41(a), goods and services exported or re-exported need to be registered under Maldives Customs. With this amendment an export license is no longer required for exporting or re-exporting.

GST paid on Irrecoverable Debts

Section 59 which require businesses to obtain authorization from MIRA for deducting tax paid on irrecoverable debts was repealed. This elimination allows taxpayers to deduct GST paid on irrecoverable debts without seeking any approval from MIRA.

GST Registration Certificates

The requirement for businesses to return their GST Registration Certificate to MIRA upon deregistration of GST in section 88(c) is repealed with the amendment. The GST Registration Certificate and logo of online businesses deregistered will become void upon deregistration.

Charter of Vessels

Section 107 of the GST Regulation has been amended to include a definition for the term ‘charter’ of a vessel and the rules for determining charter arrangements. As per the definition, ‘charter’ refers to leasing of a tourist vessel for the purpose of one specific voyage or voyages not exceeding 15 days period or, leasing for the lessee’s own consumption. Other specific rules are also explained in the regulation.

Goods Imported

The amendment repeals Tax ruling TR-2016/G36 (transfer of imported goods) and introduces an additional section, section 113-2 to the regulation which provides an in-depth insight on the transfer and selling of imported goods which are liable for GST. With the amendment a registered individual is required to account GST if:

  • The goods imported for own use are sold or transferred to another person.
  • The goods imported for a purpose other than own use are sold or transferred to another person or is utilized for own use.
  • The goods imported by a registered person other than an individual is sold or transferred to another person.

These changes in the regulation will take effect from 26th June 2020 onward.