Malta is changing its VAT rules for gambling from 1 October 2026. Legal Notice 86 of 2026 amends the VAT Act. Meanwhile, the Malta Tax and Customs Administration (MTCA) has published guidelines listing the exempt supplies. The MTCA and the Malta Gaming Authority (MGA) announced the reform on 2 April 2026.
The reform has three aims. It clarifies the scope of the exemption. In addition, it taxes services where they are consumed. Finally, it keeps VAT neutral for operators. So operators should check which category each of their services falls into.
The position up to 30 September 2026
Until now, betting, lotteries and other gambling were exempt without credit. This follows from item 9 of Part Two of the Fifth Schedule to the VAT Act. No VAT was charged on these supplies. Input VAT attributable to them could not be deducted either.
What changes from 1 October 2026
Legal Notice 86 amends that item. Now the exemption applies only to gambling approved by the Minister. The MTCA guidelines list the approved categories. If a supply is not on the list, it is not exempt.
Under the guidelines, the following stay exempt:
- low-risk games, as defined in the Fifth Schedule to the Gaming Authorisations Regulations (SL583.05);
- occasional junket events, which are not held regularly and need specific planning;
- bets on the outcome of a real-life event that can only be accessed at the venue, such as bookmakers and betting exchanges.
These supplies remain exempt without credit. Therefore, input VAT attributable to them is still not deductible.
What falls outside the exemption
All other gambling and betting supplies are no longer exempt. They include:
- online sports betting;
- online casino and poker;
- online bingo;
- live casino.
VAT on these supplies is due in the country set by the place-of-supply rules.
Where VAT is due
The MTCA treats online betting, access to online gambling platforms and online bingo as electronically supplied services. For consumers, they are taxed where the customer is established, has a permanent address or usually resides. If VAT is due in another EU Member State, it is accounted for through the One-Stop Shop (OSS). Alternatively, the business can register for VAT in that Member State. For other gambling services, the place of supply depends on classification.
Input VAT and B2B supplies
Taxable supplies give a right to deduct input VAT. Exempt supplies without credit do not. Therefore, businesses making both kinds of supplies must apportion input VAT. In addition, moving capital goods from exempt to taxable use may trigger adjustments.
The guidelines also cover B2B supplies to the gaming sector. Platform providers and game suppliers make these supplies, for example. They are not among the approved categories. Consequently, they are not exempt.
Gaming tax
Amendments to the Gaming Tax Regulations (S.L. 583.10) also take effect on 1 October 2026. The gaming tax on gaming revenue and the gaming device levy are now merged into one gaming tax. Rates depend on the type of game and the mode of offer. At the same time, land-based and online operators serving players in Malta pay the same rates.