GST (Part 1)

What is GST?

• A tax imposed under the Goods and Services Tax Act on goods and services provided by registered businesses in Maldives

• A tax imposed under the Maldives Tourism Act on goods and services provided by registered businesses in Maldives

• A tax imposed under the Goods and Services Tax Act on goods and services provided by a resident in Maldives

• A tax imposed under the Tourism Goods and Services Tax Act on goods and services provided by registered businesses in Maldives

Current GST rate for domestic air transportation is;

• 8% for Maldivians and 16% for persons other than Maldivians

• 6% for Maldivians and 12% for persons other than Maldivians

• 5.5% for Maldivians and 18% for persons other than Maldivians

• 16% for Maldivians and 8% for persons other than Maldivians

Which of the following is NOT a tourism good or service?

• Room nights sold from Green Lagoon resort

• Services provided by Sama's Diving school located at her home in K. Maafushi

• Mini bar service provided at Hello Maldives guesthouse located at B. Dharavandhoo

• Scuba gear sold by Fahi Shop located in Lilly Beach resort

Travel agency service providers;

• Must register for TGST

• Should charge 8% GST from Maldivian customers and 16% GST from tourists

• Are not required to register for GST because resorts will be paying GST on behalf of them

• Are exempt from GST

Electricity services are exempt from GST;

• If electricity service is provided by power houses registered with the Maldives Energy Authority, via a meter or for a fixed charge.

• If electricity service is provided by the government

• If electricity service is provided by a GST registered person, via a meter or for a fixed charge.

• If electricity service is provided by a a company registered in Maldives, via a meter or for a fixed charge.

Service provided by canteen operated at Maldives National University:

• Is exempt from GST if it is operated for the benefit of students without public access

• Is exempt from GST if the canteen is located inside the boundary of Maldives National University.

• is subject to GST at 0%.

• is subject to GST at 3.5%

International transportation is exempt from GST. This means domestic transportation provided in connection with international transportation is;

• Subject to GST

• is exempt from GST

• subject to GST at 16%

• a zero-rated service

Which of the following is not a zero-rated item?

• Imported desiccated coconut

• Imported baby carrots

• Cumin seeds

• Spring Onion

Goods supplied by duty free shops are;

• an export, therefore zero-rated

• exempt from GST

• subject to GST at 8%

• zero-rated if sold to persons other than Maldivians

Flats, land and buildings sold by the Government or by the Government through a third party is exempt from GST;

• If sold under a social housing scheme where the government has the discretion to control the price

• if the project is registered with MIRA

• If the cost of the flat, land or building does not exceed the threshold set by the President

• If the flats, land and buildings are sold to the residents of Maldives