Maldives: Technical Assistance Report-Modernizing the Goods and Services Tax
IMF Staff Country Reports, June 16, 2022
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- Canonical URL
- Maldives: Technical Assistance Report-Modernizing the Goods and Services Tax
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Bibliographic details
- Published: June 16, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400215360.002
Summary
- Reviews the Goods and Services Tax (GST) regime in the Maldives and identifies policy and legal reform options to support its modernization, and to enhance efficiency, equity, and revenue mobilization.
- Notes that despite five existing amendments to the Goods and Services Tax Act (GSTA) and 28 amendments to the associated regulations, the core parameters of the GST have barely changed in nearly 12 years.
- Highlights that rapid changes to global business models and the increasing digitalization of the Maldivian economy have made key features of the legislation—such as place of supply rules—increasingly inadequate.
- States that the mission identified several key GST policy reforms and proposed legal redrafting recommendations that should be prioritized by the authorities in the upcoming reform window.
- Indicates that Table 1 summarizes the potential revenue implications and implementation timeline of the main policy measures proposed.
Key findings and proposed reforms
- Core finding: core parameters of the GST have barely changed in nearly 12 years despite multiple amendments to the Act and regulations.
- Digitalization and changing global business models have rendered existing place of supply rules and other legislative features inadequate.
- The mission proposes:
- Policy reforms to modernize GST parameters.
- Legal redrafting recommendations to address deficiencies in the current GSTA and regulations.
- Prioritization of identified reforms in the upcoming reform window.
Revenue implications and implementation
- The report references a Table 1 that summarizes:
- Potential revenue implications of the main policy measures proposed.
- Implementation timeline for those measures.
Publication and metadata
- Pages: 72
- Volume: 2022
- DOI: https://doi.org/10.5089/9798400215360.002
- Issue: 187
- Series: Country Report No. 2022/187
- Stock No: 1MDVEA2022002
- ISBN: 9798400215360
- ISSN: 1934-7685
- Subject: Economic sectors, International organization, Monetary policy, Taxes, Technology
- Keywords: Act amendment, Consumption taxes, Digital currencies, Global, GST payment, South Asia, Tax allowances, Tourism, tourism Goods and Services Tax, Value-added tax, VAT C-efficiency, VAT revenue
International Monetary Fund. Fiscal Affairs Dept. "Maldives: Technical Assistance Report-Modernizing the Goods and Services Tax", IMF Staff Country Reports 2022, 187 (2022), accessed 9/9/2026, https://doi.org/10.5089/9798400215360.002
Content in this bundle
- 1mdvea2022002