Tax rate by region Maldives

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

GST in Maldives: A Comprehensive Overview

In 2015, Maldives implemented a Goods and Services Tax (GST) to improve revenue generation and compliance, aligning with international tax practices. This marked an important step for the Maldivian economy, introducing a comprehensive consumption tax. The standard VAT rate for most goods and services is 8%.

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Maldives

Maldives adopted a Goods and Services Tax (GST) in 2015 to enhance revenue generation and improve compliance.

Official government link: Maldives Inland Revenue Authority

8.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

No digital goods or services with reduced tax rate

Exempted product categories

No digital goods or services exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Registration must be done once threshold has been exceeded

Online registration possible

Yes

Local representative needed

Not mandatory

Registration procedure

To register for VAT in the Maldives, you must submit Form 105 to the Maldives Inland Revenue Authority (MIRA). This form can be completed and submitted online through the MIRA website or in person at a MIRA office

List of digital and electronic services liable for tax

E-books, music downloads, movies, software, video games, cloud computing, web hosting, software as a service (SaaS), streaming services, online advertising, online sales of goods and services.

Penalties

Penalty for late filing of GST return – MVR 50 per day (approx. EUR 3) plus 0,5% of the amount due.
Penalty for late payment – 0,05% of the amount due per day of delay.

Registration threshold

MVR 1 million

Filing interval

Monthly: if turnover exceeds MVR 1 million
Quarterly: if turnover don’t exceed MVR 1 million

Filing deadline

By the 28th day of the month following the reporting period

E-invoicing requirements

–

Record keeping

Minimum 5 years

How-To Guides: Maldives SaaS VAT

Step: 1 Threshold

Effective October 2, 2011, GST is charged under the Goods and Services Tax Act (Law Number 10/2011).

 

Threshold: MVR 1,000,000 in annual taxable supplies. Registration is mandatory if this threshold is met or expected to be met in the next 12 months.

Step: 2 Business Registration

Foreign providers of digital services must register with the Maldives Inland Revenue Authority (MIRA). Since July 1, 2025, Maldives applies a destination-based principle for digital services.

Step: 3 TIN/VAT Number

Registered entities are issued a Taxpayer Identification Number (TIN) by MIRA.

Step: 1 Standard VAT Rate

In Maldives, the standard VAT rate is 8%.

Step: 2 Determine if you need to register.

To calculate your tax amount, use the following formula: 

 

Tax Amount = Net Price x 8%

Step: 3 Reverse Charge (B2B)

While the destination principle requires foreign providers to register for B2C, for cross-border B2B transactions, a Reverse Charge Mechanism may apply where the Maldivian business customer self-assesses the tax, provided they are GST-registered.

Step: 1 Selling B2C

You must charge 8% GST. The “90-day residency” rule is a standard guideline for determining if an individual is a resident for tax purposes in the Maldives.

Step: 2 Selling B2B

If the buyer is a GST-registered business, you may not need to collect tax if the Reverse Charge applies; verify the buyer’s TIN. Note: 10% Withholding Tax may apply to “Technical Service Fees” or “Royalties” paid by Maldivian businesses to non-residents.

Step: 3 Invoice Requirements

Invoices should contain: 

  • Supplier Name & TIN
  • Words “Tax Invoice” prominent
  • Unique Invoice Number
  • Date of Issue
  • Description of Services
  • Value excluding GST
  • GST Rate & Amount
  • Total Amount (inclusive of tax)

Step: 1 Determine if you need to register.

The filing Interval is:

• Monthly: If turnover ≥ MVR 1,000,000/month.

• Quarterly: If turnover < MVR 1,000,000/month.

Step: 2 Filing Deadline

Taxes should be filed on the 28th day of the month following the end of the period. If the 28th falls on a weekend or public holiday, it moves to the next working day.

Step: 3 Submission

Tax records should be filed via the MIRAconnect online portal. Payments must be made in MVR for General GST (GGST).

Step: 4 Record Keeping

Tax records should be kept for a minimum 5 years from the end of the relevant tax year.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Maldives’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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