Malta Gaming Sector’s Updated Tax and VAT Regimes Now in Force

The Malta Gaming Authority announced on September 30, 2026, that Malta’s revised VAT and gaming tax frameworks for the gaming sector come into effect on October 1, 2026. The Authority described the changes as a coordinated package of reforms aimed at providing greater clarity, predictability and efficiency for operators.

The changes were introduced through Legal Notices 84 and 86 of 2026 and follow what the Authority described as extensive engagement with the gaming industry. They form part of a Government of Malta commitment, announced in the 2026 Budget, to safeguard the long-term sustainability and competitiveness of Malta’s gaming sector.

Legal Notice 84 of 2026 is the Gaming Tax (Amendment) Regulations, 2026, and Legal Notice 86 of 2026 is the Value Added Tax Act (Amendment of Fifth Schedule) (Amendment No. 2) Regulations, 2026. Both instruments were published in the Government Gazette of Malta on April 1, 2026.

Revised VAT Treatment for Gaming Services

Under the revised VAT framework, the treatment of certain gaming services has been clarified, including in relation to sports betting and certain casino offerings, together with the application of the relevant place of supply rules, according to the Authority. The revised framework also provides for the recovery of eligible input VAT costs where applicable.

The Malta Tax and Customs Administration and the Malta Gaming Authority first informed stakeholders of the forthcoming changes in a joint notice issued on April 2, 2026, confirming then that the changes would enter into force on October 1, 2026. That notice said Malta was proceeding with targeted amendments to the VAT Act following consultation with industry stakeholders and an assessment of the existing VAT treatment of gaming services. The notice said clarifying the scope of the VAT exemption for gambling supplies would ensure that the principle of taxation at the place of consumption is adequately reflected, and that delimiting the exemption would lead to a right of recovery of eligible input VAT costs.

In guidelines dated April 6, 2026, the Commissioner for Tax and Customs set out which supplies of betting, lotteries and other gambling remain exempt from VAT without credit under item 9 of Part Two of the Fifth Schedule to the VAT Act. That provision states:

“Betting, lotteries and other forms of gambling, as may be approved by the Minister.”

Under the guidelines, the approved exempt supplies are low-risk games as defined in the Fifth Schedule to the Gaming Authorisations Regulations; junket events held on an occasional basis, meaning events that are not organised on a routine basis and that, due to their scale and nature, require specific planning and organisational arrangements; and facilities for gambling on the outcome of a real-life sporting event that can only be physically accessed at the place where the event takes place, including the services of bookmakers and betting exchanges.

The Commissioner issued the guidelines under the VAT Act power to provide guidance on the manner of applying exemptions. They apply from October 1, 2026, and from that date replace and supersede previously applicable guidelines on the same matter.

Simplified Gaming Tax Rates

In parallel, the revised gaming tax framework introduces simplified gaming tax rates for qualifying gaming activities offered to players present in Malta, the Authority said. It consolidates the existing gaming tax and gaming device levy into a single structure based on game type and mode of offer.

The gaming tax amendments are made under the Gaming Tax Regulations issued under the Gaming Act, to complement the new VAT rules. The April notice described the new rates as simplified and equitable for both land-based and online operators, and said the reconfiguration applies exclusively to gaming services provided within the territory of Malta.

The Authority said the two reforms were developed in tandem to provide a balanced overall framework for the sector while maintaining Malta’s position as a stable, competitive and internationally recognised gaming jurisdiction. The April notice described the package as a measured, forward-looking policy response and said the October 1, 2026 effective date gave stakeholders adequate lead time to plan, adapt and align their operations.

Reporting Portal Transition and Deadlines

Alongside the entry into effect, the Authority set out transitional reporting arrangements for licensees. The regulatory reporting Portal will continue to cater for submissions relating to the September 2026 reporting period under the current regime. Those submissions remain due by October 20, 2026, and should be completed in accordance with the requirements applicable to that reporting period.

The Authority and the Malta Tax and Customs Administration said they will continue to provide relevant guidance to support stakeholders in applying the revised frameworks.

Portal functionality required to support reporting under the revised VAT and gaming tax frameworks will be made available by November 1, 2026. Submissions relating to the October 2026 reporting period are due by November 20, 2026, and will be submitted through the updated Portal in accordance with the new reporting requirements introduced under the revised legislative framework.