Maldives tourism service charge versus GST: a worked calculation

How do service charge and GST combine?

The service charge comes first, then GST is charged on the room plus service. That compounding is why the total uplift is 28.7%, not 27%.

The 17% tourism GST rate applies from 1 July 2025 (MIRA circular). The 10% service charge is set by most hotels and resorts, as the holiday.com.mv cost guide notes. More on each charge is on our Budget and Real Cost hub.

The calculation, step by step

Here is one night in a USD 300 room before tax.

The shortcut is room rate x 1.287. A common mistake is adding 10% and 17% to get 27%, which undercounts by USD 5.10 on this room.

The same uplift across room rates

These rows apply 28.7% to typical nightly rates from the holiday.com.mv bands (checked 11 Oct 2026), converted at RM4.09 per USD. Green Tax is not included.

Over a four-night water-villa stay, the shortcut error reaches USD 68, about RM278. Small per night, but it adds up on longer or dearer stays.

Where Green Tax fits in

Green Tax is a flat amount per guest per night, not a percentage. It is USD 12 at resorts and larger properties, and USD 6 at small inhabited-island guesthouses (MIRA circular, from 1 January 2025).

For a couple in the USD 300 room, add USD 24 per night. The full night becomes USD 410.10, about RM1,677. For Green Tax worked out over a whole stay, see Green Tax for a couple over four nights.

Applying the uplift to meals and extras

Resort menus, spa lists and excursion prices are often shown before service and GST. A dinner listed at USD 100 for two becomes USD 128.70, about RM526.

That matters most on room-only or bed-and-breakfast stays, where you pay for most meals on site. Our page on service charges and how they affect your bill covers what to check on menus.

Worked example: a four-night stay, line by line

Two adults, a USD 300 room, four nights, at a resort charging USD 12 Green Tax. This is how a clear quote should lay it out.

The room comes to USD 1,200 before tax. Service charge adds USD 120, making USD 1,320, and GST at 17% adds USD 224.40.

That gives USD 1,544.40 for the room. Green Tax for two guests over four nights adds USD 96, for a stay total of USD 1,640.40, about RM6,709.

Of that, taxes and charges make up USD 440.40, about RM1,801, or 37% on top of the room rate. Green Tax is why the share is above 28.7% for a couple in a moderately priced room.

How older quotes differ

Before 1 July 2025 the GST rate was 16%, so the combined uplift was 1.10 x 1.16, or 27.6%. On the USD 300 room that gives USD 382.80 instead of USD 386.10.

If a price sheet or blog uses 27.6%, it predates the change. Re-run it at 28.7% before comparing.

Checklist for reading a resort quote

• Is the rate marked plus plus, net or inclusive?
• Is the service charge 10%, or a different figure?
• Is GST charged at 17% on the room plus service?
• Is Green Tax shown per guest per night, and at which rate?
• Are meal plans priced before or after service and GST?
• Is the total in USD, and at what exchange rate if shown in ringgit?

Use the Green Tax and tourism GST calculator to check a figure quickly.

Who needs to check this most

Travellers booking direct with resorts see rates before tax most often, so they benefit most from doing the sum. Package travellers usually get tax-inclusive prices, but should still confirm.

Families paying for extra meals and older travellers who prefer room-only stays will meet the uplift on every bill. Rates vary by property, so check each quote line by line.