Malta’s updated gaming tax and VAT framework took effect on October 1, 2026, introducing revised rates, clearer classifications and new compliance procedures for licensed gaming businesses. The changes were enacted through Legal Notices 84 and 86 of 2026 following the measures announced in Malta’s 2026 Budget.
The reforms are intended to make the tax treatment of gaming activities more predictable while preserving Malta’s competitiveness as an international gaming jurisdiction. They also replace the previous dual approach involving gaming tax and a separate gaming device levy with a consolidated model.
How the New Gaming Rates Are Applied
The revised system calculates gaming tax on aggregate gaming revenue. The applicable percentage depends on the type of service being provided and, in certain cases, the location or format in which the activity takes place.
| Gaming category | Typical activity | Tax rate |
|---|---|---|
| Type 1 | House-banked casino games and lotteries using a random number generator | 15% |
| Type 2 | Betting against the house on events or competitions at odds set by the operator | 10% |
| Type 3 | Commission-based products, including poker, bingo and betting exchanges | 10% |
| Type 4 | Controlled skill-based gaming activities | 10% |
| Special categories | Qualifying activity conducted in controlled premises, plus junkets and junket events | 5% |
Type 1 gaming now carries the highest rate at 15%. Types 2, 3 and 4 are grouped under a 10% rate, while eligible activities in controlled gaming premises and qualifying junket arrangements remain subject to 5%.
One Charge Replaces the Former Two-Part Approach
Before the reform, operators had to account for gaming tax alongside a separate levy on gaming devices. The updated framework removes that additional device levy and brings the relevant charges together under a single gaming tax structure.
This consolidated method links the operator’s liability to the classification of the game and the manner in which it is offered. For businesses serving players in Malta, the result should be a more straightforward process for identifying the applicable charge and preparing tax calculations.
VAT Treatment Becomes More Specific
Legal Notice 86 also narrows Malta’s gambling VAT exemption from October 1, 2026. The revised wording means that a broader range of gambling and betting services may fall within the scope of Maltese VAT rather than remaining exempt.
The updated guidance addresses the place of supply and the potential recovery of eligible input VAT. Sports betting, live casino services and several other products may therefore require closer VAT analysis, while certain limited activities can continue to qualify for exemption under the applicable conditions.
For operators, the VAT changes are particularly relevant because taxable treatment may affect the ability to recover qualifying input costs. Businesses will need to review their service categories, customer locations, invoicing processes and accounting controls in light of the new rules.
Reporting Deadlines Are Split Between Two Regimes
The transition is being handled through separate reporting periods rather than one immediate change to every outstanding return. September 2026 filings remain governed by the former requirements and must be submitted by October 20, 2026.
The regulatory Portal will continue accepting those September submissions under the rules that applied during that month. Operators should not apply the revised classifications or reporting format to that return unless official instructions specifically require otherwise.
Portal functionality for the new VAT and gaming tax framework is scheduled to become available by November 1, 2026. The first return prepared under the revised system will cover October 2026, with submissions due by November 20, 2026.
What Licensees Should Review Now
Operators should map each gaming product to the correct Type 1, Type 2, Type 3 or Type 4 category and confirm whether any activity qualifies for the 5% treatment. Revenue calculations should also reflect the new consolidated structure rather than the former gaming tax and device levy arrangement.
Businesses should separately examine their VAT position, particularly where they provide sports betting, live casino or business-to-business gaming services. Internal reporting systems, tax documentation and Portal procedures may all require adjustment before the October return is filed.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing guidance during the transition. For licensed operators, the immediate milestones are the October 20 deadline for the September return, the planned November 1 Portal update and the November 20 deadline for the first filing under the new framework.
