The Goods and Services Tax Regulation (Regulation Number 2011/R-43) shall be amended as follows:

1. Amend Section 7(c) of the aforementioned Regulation as follows:

7. (c) Notwithstanding anything to the contrary in this Section, a person who operates shops and cafés in a tourist establishment or on a vessel exclusively for the employees of such tourist establishment or vessel shall register those shops and cafés separately from other taxable activities conducted by that person. 

2. Insert a subsection after Section 7(c) of the aforementioned Regulation as follows:

7. (d) Notwithstanding subsection (c), if a shop or a café specified in subsection (c) is operated in the establishment or on the vessel by the same person, such shops and cafés shall be registered together.

3. Amend Section 43(e) of the aforementioned Regulation as follows: 

43. (e) Where the operator of an establishment or vessel specified in Section 15(a)(1) of the Act supplies goods and services to a shop or café operating exclusively for the employees of that establishment or vessel, the operator of the establishment or vessel specified in Section 15(a)(1) shall not be required to charge output tax on such supplies given that the shop or café is operated by the operator of the establishment or vessel and is registered for GST.

4. Insert a Section after Section 57 of the aforementioned Regulation as follows:

57-1. Goods and services supplied by domestic air transportation service providers

(a) For the purposes of Section 15(a)(5) of the Act, “goods sold and services provided by domestic air transportation service providers to persons other than Maldivian citizens” means the transportation of persons other than Maldivian citizens and their accompanying cargo from a place in the Maldives to another place in the Maldives, by air.

(b) Notwithstanding subsection (a), the supply of a charter flight shall be considered as a supply to persons other than Maldivian citizens, unless the flight is chartered to transport Maldivian citizens.

(c) Domestic air transportation service providers shall state on each domestic flight manifest, the National Identity Card number of each Maldivian citizen who travels on the flight and to whom tax at the rate specified in Section 16 of the Act applies in respect of the air transportation service. Where such number of a Maldivian citizen is not stated on the flight manifest, and the air transportation service provider cannot otherwise provide evidence that the passenger is a Maldivian citizen, the air transportation service provider shall pay to MIRA tax in respect of the domestic air transportation service supplied to that person at the rate specified in Section 15(b) of the Act.

5. Insert a section after Section 105-1 of the aforementioned Regulation as follows:

105-2. Shops and cafés operating exclusively for employees of such tourist establishments

Where MIRA considers that shops and cafés operated exclusively for the employees of tourist establishments are being used to carry out transactions to avoid tax which would otherwise have been payable at the rate specified in Section 15(b) of the Act, such transactions shall be subject to tax at the rate specified in section 15(b) of the Act.

6. Insert a subsection after Section 113-3(c) of the aforementioned Regulation as follows:

113-3. (d) Tax ruling number TR-2014/G22 (Goods and Services Tax: Domestic air transportation services supplied to Maldivian citizens and supplies to employees at tourist establishments) shall be repealed from the date of effect of the Thirty-first amendment to the Goods and Services Tax Regulation (Regulation number 2011/R-43).  

7. This Regulation shall have effect from the date of its publication in the Government Gazette.