How does GST work?

GST can be charged only after registering for GST. GST must be charged on all goods and services other than zero-rated and exempt goods and services. Key features of the GST regime in the Maldives include;

  • GST registered businesses charge GST on their sales (output tax) and can claim the amount of GST that you paid on your purchases as input tax, provided that you satisfy the conditions under which input tax can be claimed.
  • To claim the GST you have paid, you must have a tax invoice and need to file the GST return together with an input tax statement.
  • When the GST charged by you on your sales is more than your input tax, you have a GST payable. You must pay this amount to MIRA.
  • When the GST charged by you on your sales is less than your input tax, you can carry forward and set it off against your future GST liabilities.
  • Businesses not registered for GST and businesses supplying exempt goods and services cannot claim back GST on their expenses.
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