GST Circulation

7/27/2019 GST Circulation

1/4

SUMMARY OF GOODS & SERVICES TAX

The Goods and Services Tax Bill was passed in the Peoples Majlis on 29 August2011 and was ratified by the President on 02 September 2011.

Goods and Services Tax (GST) is imposed through the Goods and Services Tax ActNo 10/2011. GST will be implemented from 02 October 2011.

GST refers to tax imposed on the value of goods and services supplied in the Maldives. These exclude;

Any right or interest vested in relation to an agreement or by law Immoveable property MoneyInput tax

Tax payable by one registered person to another registered person in relation to the supply of goods and services bythe recipient to the supplier during the course of supply of goods/services by the supplier.

Output tax

Tax chargeable on the recipient of a good or service supplied by a registered person.

Taxable activity


2/4

Tax rates

T-GST G-GST

1. 3.5% for the period 02 October 2011 to 31 December 2011;2. 6% for the period 01 January 2012 to 31 December 2012;3. 8% from 01 January 2013 onwards.

1. 3.5% from 02 October 2011 to 31 December 2011;2. 6% from 01 January 2012 onwards.

Time of supply of goods and services

Time of supply is earlier of;

1. The time at which the tax invoice for good or service is issued;2. The time at which the recipient of such good or service makes full or partial payment.

Where the payment for supply of goods and services is made based on instalment agreement, earlier of;

1. The date on which the instalment payment was received2. The date on which the instalment payment falls due

Value of supply of goods and services

If the consideration for the supply is money, the value of supply equals to the amount of money. If the consideration for the supply is not money, the value of supply equals to the open market value of the

consideration. If the supply is made under credit contract, the value of supply equals to prices the supplier would have charged if

paid in full at the time of contracting


3/4

Particulars required on a tax invoice

Tax Invoice written in a prominent manner Name, address and TIN of the supplier of goods or

services Name, address and TIN of the recipient of goods or

services Invoice number Date of issue Details of services provided or details and quantity ofgoods sold

The total value of goods/services supplied, excludingthe tax charged on the value of goods/services

Tax charged on the value of goods/ services supplied The value of goods/services inclusive of tax or, if the

amount of tax has been included in the price of thegood/ service, a statement to such effect.

If the value of the goods or services supplied by a registered person is lower than MVR 5,000/-, inclusive of tax, theTIN of the recipient of goods or services may be excluded in the tax invoice.

Registration

Persons who are carrying taxable activity in the Maldives;

whose taxable supplies during the past 12 months exceeded MVR 1,000,000/- whose estimated taxable supplies for the following 12 months exceed MVR 1,000,000/- who provide tourism goods and services who are importing goods into the Maldives at the time of commencement of the Act

Limitations

This circulation contains information in summary form and is therefore intended for general guidance only. This

summary may not address the tax situation of a particular person company partnership or any other body of persons


4/4

Appendix

Page 4/4

Tax exempt goods and services Zero-rated goods and services

Following goods and services provided by the State institution or a provider registered withthe relevant government authority;o Electricityo Watero Telecommunication serviceo Sewerage facilitieso Educationo Health services

Services specified in the Regulations pursuant to the Act that facilitate and are essential forprovision of zero rated goods and services.

Medical devices stipulated in the Regulations pursuant to the Act and drugs authorized forsale by the Government and are sold by state institution or a pharmacy registered with therelevant government authority.

Sale of goods received as donations or gifts by State institution or a voluntary body orassociation registered with the relevant government authority.

Financial services stipulated in the regulation made pursuant to the Act. Rent earned from lease of immoveable property. International transportation services. Goods and services supplied to persons exempted from GST by another Act Payments collected as fines.

Essential goods, i.e;o Rice, sugar and flour imported by State Trading Organisation and are sold at

controlled prices.o Salto Milko Cooking oilo Eggso Tea leaveso Deep sea fish, reef fish, all types of fish packed in the Maldives, and rihaakuru (fish

paste)o Potatoes, onionso Ingredients used in making curry paste (cumin, fennel, coriander, turmeric, garlic,

ginger, chilli, chilli powder, cinnamon, cardamom, peppercorn, any other suchingredient)

o Dhiyaahakuru, coconuts (kaashi, kurunba, kurolhi)o Carrots, cabbage, beans and tomatoes among vegetableso All kinds of fruitso Bread, buns and faaroshi (rusk)o Baby diaperso Baby foodo Cooking gaso Dieselo Petrolo Adult diapers

Goods and services exported from the Maldives Sale of a going concern

Consequences

1. Tax shall not be charged on the goods or services specified as tax exempted;2. Input tax payable for goods and services obtained in relation to the provision of services

and sale of goods specified in tax exempted items shall not be claimed;

3. A tax invoice shall not be issued in relation to a good or service specified as tax exempteditems of the Act and, even if an invoice is issued in relation to the above it shall not includeany GST.

1. Tax shall not be charged on the goods or services specified;2. Input tax payable for goods and services obtained in relation to the provision of services or

sale of goods specified may be claimed.

Documents

GST Circulation