VAT And Gambling – An Evolving Landscape

Malta based gambling operators witnessed several VAT changes over the years starting with the 2015 EU wide introduction of the special rules relating to supplies of electronically supplied services' ('ESS') and the 2018 changes to the domestic application and interpretation of the gambling VAT exemption as well as the introduction of VAT Grouping rules in the same year.

Further VAT changes likely to impact gambling operators loom on the horizon. On 5th April 2022, the European Council agreed to the introduction of Council Directive 2022/542 – the Reduced VAT Rates Directive. One of the changes that will be brought about by this Directive relates to VAT treatment of services falling under Article 54 of the EU VAT Directive.