Malta to overhaul VAT and gaming tax frameworks

Malta is set to introduce a series of coordinated tax reforms impacting its gaming sector, following the publication of Legal Notices 84 and 86 of 2026.

Announced jointly by the Malta Gaming Authority (MGA) and the Malta Tax and Customs Administration (MTCA), the changes will come into force on 1st October 2026.

The reforms follow commitments outlined in Malta’s 2026 Budget and are based on feedback gathered through ongoing consultation with industry stakeholders. While framed as technical updates, the combined changes to VAT and gaming tax structures signal a more substantive recalibration of how the sector is taxed.

VAT framework to be clarified and partially narrowed

A key element of the reform is the revision of the VAT treatment of gambling and betting services under the VAT Act (Cap. 406). The MTCA is expected to issue detailed guidelines to accompany these amendments.

The scope of the VAT exemption for gambling services will be clarified, particularly in relation to sports betting and certain casino offerings. This includes guidance on how “place of supply” rules should be applied, reinforcing the principle that taxation should occur where consumption takes place.

Importantly, the anticipated narrowing of VAT exemptions may allow operators to recover input VAT on certain costs. This would address longstanding inefficiencies in VAT recovery, particularly for business-to-consumer (B2C) operators and some business-to-business (B2B) providers, potentially improving cost structures across the sector.

Alongside the VAT changes, the MGA will introduce amendments to the gaming tax framework under the Gaming Tax Regulations (Subsidiary Legislation 583.10).

The updated framework will:

• introduce simplified and more equitable gaming tax rates for both land-based and online operators offering qualifying gaming activities to players located in Malta; and
• consolidate the existing gaming tax and gaming device levy into a single structure, categorised by game type and delivery channel.

This restructuring is designed to create a more coherent and balanced tax system, applying specifically to gaming services provided within Malta’s territory.