For most Maldivian SMEs, Goods and Services Tax is the first piece of tax compliance they encounter — and it is also the one they most commonly get wrong. Not because the rules are especially complex, but because the day-to-day pressures of running a business push compliance down the priority list until a MIRA notice arrives.
This guide is brief and practical. It is not exhaustive, and it does not replace professional advice when amounts become material.
When does a business need to register?
Registration becomes mandatory once taxable supplies exceed the prescribed threshold over a continuous twelve-month period — or once the business expects to cross that threshold in the next twelve months. Voluntary registration is permitted below the threshold, and is often worth considering for businesses that supply other GST-registered customers.
Two thresholds, two rates
There are separate thresholds for the General Sector and the Tourism Sector. The tourism threshold is materially lower, and the tourism rate is materially higher. If your business sells to tourists, resorts, guesthouses or charter operations — even occasionally — this distinction matters.
The most expensive GST mistake is not under-paying. It is failing to register at all, then back-paying years of accumulated liability with interest and penalty.
What does a clean return look like?
A return is filed for each taxable period, with input tax credits claimed against output tax collected. The net payable or refund is reconciled to your accounting records before submission.
The five most common errors
- Claiming input tax on invoices that do not meet TIN or format requirements
- Misclassifying tourism-sector supplies as general-sector
- Failing to issue tax invoices for cash sales above the threshold
- Forgetting reverse-charge GST on imported services
- Late filing — even when there is no GST payable
When to get professional help
If your annual turnover is approaching the threshold, if a MIRA audit is on the horizon, or if you have ever submitted a return you were not fully comfortable with — that is the moment to bring someone in.