Travel agents seek confirmation on Maldives tax delay

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  • Travel agents are seekingt confirmation on reported Maldives tax postponement
  • The 17pc tax on foreign agents was reportedly delayed from 1 October 2026 to 1 April 2027
  • The tax applies to margins and commissions earned by offshore sellers
  • ECTAA and other bodies lobbied against the measure
  • Overseas travel businesses remained in operational limbo

Travel agents are seeking official confirmation after local media reported that the Maldives has postponed its 17pc tax on foreign agents and operators. The reported delay has moved the implementation from 1 October 2026 to 1 April 2027. The European Travel Agents’ and Tour Operators’ Association had lobbied against the measure which would require registration and tax on margins and commissions.

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The intenionht of the policy is to apply a 17pc Tourism Goods and Services Tax on margins and commissions earned by offshore sellers. The reform has transitioned the Maldives to a destination principle tax system. It legally went into effect on 1 October 2026 requiring unregistered offshore travel companies, wholesalers and Online Travel Agencies to register with the Maldives Inland Revenue Authority.

Industry pushback prompted the reported delay. European bodies including ECTAA and Germany’s DRV along with the Indian Association of Tour Operators warned the tax would squeeze profit margins and complicate winter 2026/2027 holiday brochures. Overseas travel businesses have remained in operational limbo pending formal confirmation from Male.

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ECTAA shared “The association is seeking official confirmation after local media reported that the Maldives has postponed its 17pc tax on foreign agents and operators from 1 October 2026 to 1 April 2027.”

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