Malta Tightens VAT Rules for Gambling – What Operators Need to Know by 1 October 2026

Malta is introducing important changes to its VAT rules for gambling, effective 1 October 2026. Legal Notice 86 of 2026 narrows the scope of the VAT exemption, meaning more gambling‑related services will now fall under Maltese VAT.

What’s Changing

The previous broad exemption is being replaced with a tighter definition covering only “betting, lotteries and other forms of gambling, as approved by the Minister.”
This means several services that were previously exempt may now become taxable.

Why It Matters

Operators may need to:

• Start charging VAT on certain supplies
• Reassess input VAT recovery (some operators may now recover VAT they previously couldn’t)
• Update VAT reporting and compliance processes
• Review pricing and contract terms
• Evaluate VAT obligations in customer jurisdictions, especially for online, streamed, and live casino services

Key Clarifications from MTCA

The following remain exempt:

• Low‑risk games under SL583.05
• Occasional junket events
• On‑site betting facilities tied to real‑life events
• Live casino services (exempt, but place‑of‑supply rules apply based on customer location)

Additionally, online betting, RNG casino/poker, and online bingo are now classified as electronically supplied services (ESS), meaning VAT may be due where the customer resides.

What Operators Should Do Now

• Review all supplies against the new exemption list
• Assess VAT exposure and input VAT recovery
• Prepare compliance updates ahead of 1 October 2026
• Check place‑of‑supply rules for online and live casino services
• Consider OSS registration where required

Professional Advisory Support

For operators needing clarity, structured guidance, or compliance planning, we recommend engaging our trusted Malta‑based advisory partners, who specialise in VAT, gaming regulation, and cross‑border operational structuring.