A Tax Ruling has been issued by the Maldives Inland Revenue Authority (MIRA) on 8 August 2016 clarifying the GST treatment of imported goods. The Ruling explains the GST treatment when goods are imported to Maldives under an import license (regardless of whether the import license is issued for business use, personal use, production purpose or for use in a project, etc.) and those goods are transferred to third parties or used for personal consumption
As per the ruling, if the import license is for own use, GST is applicable on the imported goods only if the goods are sold or transferred to another person. If the import license is for a purpose other than own use (i.e. sale, production purposes, use is a project, courier services), GST is applicable on the imported goods if they are sold or transferred to another person as well as in the case where the goods are used for the importer’s own use.
The Ruling does not introduce any new rules, however, formalizes an existing practice of the MIRA.