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.
