Legal Notice 86 of 2026 amends the VAT exemption for gambling under the Value Added Tax Act (Cap. 406) with effect from 1 October 2026. The Malta Tax and Customs Administration (MTCA) has published guidelines setting out which gambling supplies are exempt from that date. The MTCA and the Malta Gaming Authority (MGA) announced the changes on 2 April 2026, together with amendments to the Gaming Tax Regulations. According to the announcement, the VAT changes clarify the scope of the exemption, set out how the place-of-supply rules apply to gambling services so that VAT is charged where the services are consumed, and maintain VAT neutrality for gaming operators. This article summarises the VAT and gaming tax position applicable from 1 October 2026.
Position up to 30 September 2026
Up to 30 September 2026, betting, lotteries and other forms of gambling covered by item 9 of Part Two of the Fifth Schedule to the VAT Act are exempt without credit. No VAT is charged on these supplies, and input VAT attributable to them is not deductible.
Legal Notice 86 of 2026
Legal Notice 86 of 2026 amends item 9 of Part Two of the Fifth Schedule to the VAT Act. From 1 October 2026, the exemption applies to betting, lotteries and other forms of gambling as approved by the Minister. The MTCA guidelines list the approved categories. Gambling supplies that do not fall within an approved category are not exempt from 1 October 2026.
Exempt supplies from 1 October 2026
Under the MTCA guidelines, the following supplies are exempt:
- Low-risk games, as defined in the Fifth Schedule to the Gaming Authorisations Regulations (SL583.05).
- Occasional junket events, being events that are not held on a regular basis and require specific planning and organisation.
- Facilities for betting on the outcome of a real-life event that can only be accessed physically at the venue where the event takes place, including bookmaker services and betting exchanges at sporting events.
These supplies remain exempt without credit. Input VAT attributable to them is not deductible.
Supplies outside the exemption
Gambling and betting supplies not covered by the approved categories are outside the exemption. These include:
- online sports betting
- online casino and poker
- online bingo
- live casino
These supplies are subject to VAT in the country determined by the applicable place-of-supply rules.
Place of supply
The MTCA guidelines classify online betting, access to online gambling platforms and online bingo as electronically supplied services. Electronically supplied services provided to consumers are taxed in the country where the customer is established, has a permanent address or usually resides. Where VAT on these supplies is due in another EU Member State, it is accounted for either through the One-Stop Shop (OSS) scheme or through VAT registration in that Member State. The place-of-supply rule for other gambling services depends on how each service is classified.
Input VAT
Taxable supplies carry a right to deduct the input VAT attributable to them. Exempt supplies without credit do not. Where a person makes both exempt and taxable supplies, input VAT is apportioned between the two. A change in the use of capital goods from exempt to taxable activities may also give rise to adjustments under the capital goods rules.
B2B supplies
The MTCA guidelines also address B2B supplies to the gaming sector, such as those made by platform providers and game suppliers. These supplies are not among the approved exempt categories.
Gaming tax
Amendments to the Gaming Tax Regulations (S.L. 583.10) also take effect on 1 October 2026. The current gaming tax on gaming revenue and the gaming device levy are consolidated into a single gaming tax, with rates set according to the type of game and the mode of offer. The same rates apply to land-based and online operators providing gaming services to players in Malta.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
