The German Travel Association (DRV) has criticized the planned expansion of the Maldivian Goods and Services Tax (GST) to include foreign tour operators and travel agencies, calling it too rushed.
As things stand, the new GST requirements for foreign travel companies are set to take effect as early as October 1, 2026. The Maldives did not pass the necessary legislation until August 31. For tour operators with long-term contracts and pricing structures, a lead time of just a few weeks is impractical. Booking and brokerage services—such as accommodations, meals, transportation, and other tourism-related services—will then be subject to additional taxation.
“The Maldives is an important destination for customers of German travel agencies and tour operators—with visitor numbers on the rise in recent years. This makes it all the more important to introduce new tax rules in a way that allows for planning, is proportionate, and is practicable,” emphasizes Albin Loidl, President of the German Travel Association.
In a letter to the government of the Maldives, the DRV called for the implementation to be postponed and for alternatives to be discussed with the travel industry. It stated that clear guidelines, simple reporting and payment processes, transitional arrangements for trips already sold, and an appropriate registration threshold or simplified procedures for smaller companies are necessary. Meanwhile, the Embassy of the Republic of the Maldives in Berlin informed the DRV that it takes the concerns and suggestions raised by the DRV very seriously—particularly in light of the importance of the German travel market for the Maldives—that it supports the DRV’s position, and that it has informed the Ministry of Foreign Affairs in Malé.
From the DRV’s perspective, the remaining lead time is insufficient for such a far-reaching tax change. Tour operators plan and calculate their travel packages many months in advance. Numerous trips for the upcoming winter season have already been sold, prices set, and marketing campaigns finalized.
“Introducing a new tax burden just a few weeks before it takes effect ignores the planning realities of the travel industry,” says DRV President Albin Loidl. “Companies need sufficient time to incorporate new requirements into contracts, calculations, and systems. In the case of package tours that have already been sold, additional costs usually cannot simply be passed on to customers.”
Together with ECTAA, the European umbrella organization for travel agencies and tour operators, the DRV also warns against disproportionate administrative burdens, particularly for smaller providers. Key practical issues remain unresolved—such as registration, the calculation of taxable margins in complex distribution chains, and the handling of cancellations, refunds, and corrections.
