Malta makes enhancements to VAT and Gaming Tax frameworks
Malta has introduced enhancements to its VAT and gaming tax frameworks that will take effect from 1 October 2026. The reforms are designed to provide greater clarity for gaming operators, simplify gaming tax rules and strengthen Malta’s position as a leading jurisdiction for the gaming industry.
The Malta government published Legal Notices 84 and 86 of 2026 on 1 April, which are designed to make enhancements to the Value Added Tax (VAT) and gaming tax frameworks under Maltese law. These changes, which respond directly to feedback received from the gaming industry following extensive consultation, will enter into force on 1 October.
Malta is making targeted amendments to the VAT Act (Cap. 406 of the Laws of Malta), with the Malta Tax & Customs Administration (MTCA) issuing supporting Guidelines to establish a reliable VAT framework for the sector.
The scope of the VAT exemption for the supplies of gambling will be clarified, particularly in relation to sports betting and certain casino offerings, alongside guidance on how the place-of-supply rules apply for such offerings. This ensures that the principle of taxation at the place of consumption is adequately reflected.
The delimitation of the exemption on such services will lead to a natural right of recovery of eligible input VAT costs, providing for a fair and simple mechanism for the protection of the neutrality of VAT for gaming operators.
In parallel, the Malta Gaming Authority (MGA) is amending the gaming tax framework under the Gaming Tax Regulations (Subsidiary Legislation 583.10) issued under the Gaming Act (Cap. 583 of the
Laws of Malta) to complement the new VAT rules. The main changes include:
- Simplified and equitable gaming tax rates for both land-based and online operators when offering qualifying gaming activities to players present in Malta.
- 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.
This reconfiguration of the gaming tax framework is specifically designed to ensure a well-balanced overall impact on Malta’s gaming services sector and will apply exclusively to gaming services provided within the territory of Malta.
“The reforms form part of the government’s broader commitment to safeguard the long‑term sustainability, competitiveness and regulatory certainty of Malta’s gaming industry, as announced in the 2026 Budget,” said Sebastien Philipona, Sovereign Group Head of Business Development for Malta and Cyprus.
“Taken together, these coordinated reforms deliver a clearer and more predictable tax framework for operators and represent a measured and forward‑looking policy response that strengthens Malta’s fiscal resilience, regulatory clarity and international standing as a leading gaming jurisdiction.”
Further information will be issued in due course by the MTCA and the MGA to support implementation and ensure clarity for all affected stakeholders.
