Malta’s VAT and gaming tax reforms: Key changes for the gaming sector

Malta’s VAT and gaming tax reforms mark a fundamental shift in the fiscal landscape for gaming operators.

Following the enactment of Legal Notice 86 of 2026, the Malta Tax and Customs Administration (MTCA) has issued new guidelines on the applicability of the VAT exemption to gambling and betting. While the tightening of VAT exemptions may initially appear to increase the tax burden, the changes also introduce new opportunities to enhance efficiency, recover costs, and optimise cross-border operations.

VAT: Exemption narrowed and certain online services treated as electronically supplied services (ESS)

As from 1 October 2026, the VAT exemption for gambling and betting will be reduced in scope. In practice, this means that many activities that were previously treated as exempt (without credit) will instead be treated as taxable supplies.

Although the exemption is being tightened, the overall impact may in certain instances be favorable for operators because a taxable status can support input VAT recovery.

Gambling and betting operations will generally be treated as a taxable supply for VAT purposes, except for:

low-risk games;
junket events (subject to Malta Gaming Authority approval); and
facilities for gambling on the outcome of a real-life event that can only be accessed physically at the venue where the event takes place (including bookmakers, betting exchanges and equivalent facilities).

As a result, most gambling and betting activities will fall within the VAT net. That said, this does not automatically mean that Maltese VAT will be charged: whether VAT is due in Malta depends on the applicable place-of-supply for the services in question.

The MTCA also issued tax guidelines on the VAT treatment of Electronically Supplied Services (ESS) and guidelines on streamed and virtual activities. Certain gaming activities including online betting, online access to gambling platforms, and online bingo games will now be considered as electronically supplied services and be taxed accordingly.

Although these developments are broadly positive for Malta’s betting and gaming industry, they nonetheless call for proactive and timely preparation. Both B2C operators and B2B providers should carry out a thorough assessment of how the revised rules will impact their VAT position and take the necessary steps to update their systems, processes and controls to ensure full compliance by the 1 October 2026 effective date.

Gaming tax: revamped framework for services offered within Malta

Separately, the Malta Gaming Authority is reshaping the gaming tax framework for gaming services offered within Malta. The changes are aimed at simplifying the system and applying a more consistent approach across different game types and delivery models. Key features include:

simplified and equitable gaming tax rates for both land-based and online operators when offering qualifying gaming activities to players present in Malta; and
consolidation of the existing gaming tax and gaming device levy into a single, streamlined gaming tax structure classified according to game type and mode of offer.

These changes will apply from 1 October 2026 and will replace the current single 5% tax on gaming revenue.