Maldives Tourist Taxes
At many resorts the printed prices are shown excluding tax and service charges. These charges can add as much as 27.6% to the published price so it's important to read the fine print to be certain of your final cost.
There are three charges you'll encounter as a tourist: GST, service charge, and green tax.
Goods & Services Tax
GST is the main sales tax in the Maldives. GST is charged at a rate of 16% for the tourism sector[1]. This includes:
- Resorts, guesthouses, private islands and liveaboards
- Travel such as seaplanes, domestic air transfers, and boats
- Facilities provided specifically for tourists such a restaurants, spas and dive centers
Service Charge
Whilst not officially a tax, service charge is mandatory by law. You can not opt out of this! The sixth amendment to the Employment Act stipulates a minimum service charge of 10%[2].
The majority of resorts charge 10%. It applies to everything from accommodation to dining and activities. The exception is businesses which only sell goods rather than services such as the shops at some resorts.
The law also dictates how the service charge is to be used:
- It must be distributed equally among all employees.
- The employer can retain no more than 1% of the funds collected for administration purposes.
- Records must be kept and submitted to the tax authority.
Service charge is not intended to be a replacement for tipping staff, but tips are entirely at your discretion.
Note: GST is applied after Service Charge. Therefore a list price of $100 excluding all charges (sometimes shown as $100++) becomes $127.60 after Service Charge and GST, not $126.
Green Tax
Maldives Green Tax is a fixed daily charge added to your accommodation. Although your accommodation provider collects it the money goes to the government.
Green Tax is a flat charge of 6 USD per person per day[3].
It applies to resorts, hotels, guesthouses and vessels. A lower rate of $3 is levied on local guesthouses and hotels with less than 50 rooms. The standard rate of $6 is always applied to resort islands regardless of size.
Conclusion
The key takeaway is to understand the total price and whether the price you're being quoted is before or after taxes. Add 27.6% to prices that exclude service and GST for an accurate comparison.
FAQ
How much is GST in the Maldives?
Goods & Services Tax (GST) is levied at 16% in the tourism sector as of 2023. This charge is similar to VAT in other countries.
Do I have to pay the Service Charge in the Maldives?
Yes, it's a legal requirement for resorts to add a Service Charge of at least 10% for tourism services. It's also a legal requirement for the money to be distributed to staff equally. You can not have Service Charge removed from your bill in the Maldives.