This ruling is issued pursuant to the authority granted under Section 84 of the Tax Administration Act (Law Number 3/2010) as amended by Law Number 14/2011. Unless otherwise stated, all references to the Act are to the Goods and Services Tax Act (Law Number 10/2011) as amended, and all references to the Regulation are to the Goods and Services Tax Regulation (Regulation Number 2011/R-43) as amended. This ruling is legally binding.

Introduction

1. This ruling explains the GST treatment of transfer of imported goods to a third party.

2. Section 8 of the Regulation states:

No requirement to register persons importing goods for a specific purpose

Notwithstanding other provisions of this Regulation, for the purpose of Section 51(a)(4) of the Act, the following importers of goods into the Maldives shall not register with the MIRA under the Act:

(a) Persons importing goods solely for private purposes other than for production, if such person does not hold a permit to sell imported goods;

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Ruling

3. Where a registered person imports goods under an import license issued for own use, and subsequently transfers or sells the goods to another person, the registered person shall account for GST on that transaction. 

4. Where a registered person imports goods under an import license issued for any of the following purposes, and the goods are subsequently transferred to another pers on, or sold, or used for the registered person’s own use, the registered person shall account for GST on that transaction:

(a) For sale.

(b) For production purposes.

(c) For use in a project.

(d) For courier service.

Date of Effect

5. This ruling shall have effect from its date of issue.