Malta’s updated gaming tax and VAT regime took effect on October 1, 2026, introducing clearer categories, revised rates, and a new timetable for regulatory submissions. The changes were introduced through Legal Notices 84 and 86 of 2026 following measures announced in Malta’s 2026 Budget.
The reforms affect how licensed operators calculate tax, classify gaming services, handle VAT, and prepare returns. They also replace two separate gaming-related charges with a more streamlined structure tied to the type of activity and its operating model.
Four Gaming Categories Now Determine the Tax Rate
The revised rules calculate tax on aggregate gaming revenue. The applicable percentage depends on the classification of the service rather than a single rate applying across the entire sector.
- Type 1 services: Casino-style games and lotteries played against the house using a random number generator are subject to a 15% rate.
- Type 2 services: Betting against the house on events or competitions at odds set by the operator is taxed at 10%.
- Type 3 services: Commission-based activities, including player-versus-player poker, bingo, and betting exchanges, are taxed at 10%.
- Type 4 services: Controlled skill-based games also attract a 10% rate.
Type 1 is therefore the highest-taxed category. Types 2, 3, and 4 share the lower 10% rate.
A separate 5% rate remains available for qualifying gaming activity carried out in controlled gaming premises. The same rate continues to apply to junkets and junket events.
Gaming Tax and Device Levy Are Now Combined
The new framework removes the previous parallel treatment of gaming tax and the gaming device levy. Instead, qualifying activities fall under a consolidated gaming tax structure based on the relevant service category and the way the activity is delivered.
For operators, this means that the same activity is no longer assessed through two separate charges. Correct classification becomes the central step in determining the amount payable, making internal product mapping and revenue calculations especially important.
The revised structure applies to qualifying gaming services offered to players located in Malta. Operators should therefore review their reporting systems, product descriptions, and revenue allocation methods to ensure that each activity is assigned to the appropriate category.
VAT Treatment Expands for Gambling and Betting Services
Legal Notice 86 of 2026 also narrows Malta’s gambling VAT exemption. The revised wording means that a broader range of gambling supplies may now fall within the scope of Maltese VAT instead of automatically benefiting from the former, wider exemption.
The updated framework provides greater direction on several practical issues:
- The place of supply, which determines where a service is treated as supplied for VAT purposes.
- The treatment of selected services such as sports betting and certain casino offerings.
- The possibility of recovering eligible input VAT where the relevant conditions are satisfied.
Guidance issued by the Malta Tax and Customs Administration indicates that many supplies by online operators, including sports betting and live casino services, may in principle become taxable. B2B providers may also be affected, while the exemption remains limited to narrowly defined activities such as low-risk games, certain approved junket events, and in-venue betting at sports events.
The VAT changes do more than alter exemption wording. They may also affect invoicing, tax coding, documentation, and the recovery of costs connected with taxable supplies.
Reporting Moves to a Staged Implementation
The transition is divided between two reporting regimes. Returns for the September 2026 period remain subject to the rules that applied before the reforms.
- September 2026 returns: Must be filed under the former requirements by October 20, 2026.
- Portal arrangements: The existing regulatory Portal continues to support September submissions using the previous framework.
- Updated Portal: Functionality for the revised gaming tax and VAT requirements is scheduled to be available by November 1, 2026.
- October 2026 returns: The first submissions under the new system are due by November 20, 2026.
Operators must therefore avoid applying the new rules retrospectively to September returns. October activity is the first period that should be prepared and filed under the revised requirements.
Compliance Priorities for Licensed Operators
The Malta Gaming Authority has presented the coordinated tax and VAT changes as part of an effort to create a more predictable and efficient framework while preserving Malta’s competitiveness as an international gaming jurisdiction.
In practical terms, operators should focus on four immediate tasks:
- Confirm the correct classification for every gaming product and revenue stream.
- Update tax calculations to reflect the 15%, 10%, and 5% categories.
- Review VAT treatment, place-of-supply analysis, and potential input VAT recovery.
- Prepare separate processes for the final return under the old regime and the first return under the new one.
Malta’s revised system is therefore both a rate reform and a reporting change. The key dates are October 20 for September returns, November 1 for the planned Portal update, and November 20 for the first October return under the new framework. Further guidance from the Malta Tax and Customs Administration and the Malta Gaming Authority will remain relevant as operators adjust their procedures.