Malta’s updated gaming tax and VAT framework took effect on October 1, 2026, introducing category-based tax rates and revised compliance requirements for licensed operators. The reforms were enacted through Legal Notices 84 and 86 of 2026 following measures announced in Malta’s 2026 Budget and consultation with industry stakeholders.
The changes are intended to make the tax treatment of gaming services more predictable while bringing related gaming charges into a more streamlined system. They also clarify how selected gambling services are handled for VAT purposes.
Tax Rates Now Depend on the Gaming Category
The new gaming tax framework applies to qualifying activities offered to players physically present in Malta. Instead of applying one general approach, it separates gaming services into four categories and calculates the charge on aggregate gaming revenue.
Type 1 covers casino-style games and lotteries played against the house where outcomes are determined by a random number generator. These activities attract the highest rate at 15%.
Type 2 includes betting against the house on events or competitions using odds established by the operator. The applicable rate is 10%.
Type 3 applies to commission-based products, including player-versus-player poker, bingo and betting exchanges. These services are also taxed at 10%.
Type 4 concerns controlled skill games and carries the same 10% rate. Qualifying activity conducted within controlled gaming premises remains subject to 5%, as do activities legally classified as junkets or junket events.
A Single Gaming Charge Replaces the Former Dual Approach
One of the central changes is the consolidation of Malta’s gaming tax and gaming device levy. Previously treated as separate charges, they are now incorporated into one gaming tax structure.
The applicable amount is determined by the game category and the manner in which the activity is offered. This gives operators one classification framework to apply instead of managing two parallel charges for the same gaming activity.
For businesses offering both online and land-based services, the revised approach makes it particularly important to review how each product is classified. The correct category will influence the rate applied to revenue generated from players in Malta.
VAT Treatment Expands for Selected Gambling Services
Legal Notice 86 also changes the VAT framework. The revised rules clarify the treatment of services such as sports betting and certain casino offerings, while narrowing the scope of the previous gambling exemption.
Under the updated framework, more gambling-related supplies may be treated as taxable for Maltese VAT purposes. This can affect operators, business-to-business providers and other businesses supplying services connected with betting and gaming.
The measures address two practical questions that operators must assess:
- First, the place-of-supply rules determine where a particular gaming service is considered supplied.
- Second, the VAT treatment establishes whether eligible input VAT costs may be recovered where the relevant conditions are satisfied.
Operators should therefore examine their invoicing, customer-location procedures and input-tax records alongside their gaming tax classifications.
Reporting Changes Begin with the October Return
The transition is staggered rather than retrospective. Returns covering September 2026 continue to follow the previous regime and must be submitted by October 20. The existing Portal will accept those filings under the requirements that applied during September.
The reporting timetable then moves to the revised system in three stages:
- September returns are filed under the former rules by October 20, 2026.
- Updated Portal functionality for the revised VAT and gaming tax requirements is expected to be available by November 1, 2026.
- The October 2026 return is the first submission made under the new framework and is due by November 20, 2026.
This means that licensees must manage two consecutive reporting periods under different requirements. Internal tax calculations and supporting records should be aligned with the relevant reporting month rather than updated retrospectively.
What Licensees Should Review Before Filing
The Malta Tax and Customs Administration and the Malta Gaming Authority are continuing to provide guidance during the transition. Their updates will help operators interpret the revised VAT rules, category definitions and Portal requirements.
In practical terms, operators should confirm how each product is classified, identify revenue generated from players in Malta, and assess whether any services now fall within the taxable VAT framework. They should also ensure that September and October submissions are prepared using the correct rules for each period.
The reforms establish a top rate of 15% for Type 1 activity, a 10% rate for Types 2, 3 and 4, and a retained 5% rate for controlled premises and qualifying junkets. Combined with the removal of the separate device levy and the revised VAT treatment, the package represents a substantial change to Malta’s gaming compliance landscape.