Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026, introducing a classification-based system for licensed operators. The changes affect tax rates, VAT treatment, the consolidation of existing charges, and the way operators submit regulatory returns.
The reforms were introduced through Legal Notices 84 and 86 of 2026, following commitments made in Malta’s 2026 Budget and consultation with representatives of the gaming sector. Their central aim is to make the treatment of gaming services more predictable while preserving Malta’s position as a competitive international jurisdiction.
How the New Gaming Tax Categories Work
The revised rules apply simplified rates to qualifying gaming services offered to players who are physically present in Malta. Instead of using one broad approach, the framework links the applicable rate to the nature of the game and the method used to provide it.
| Gaming category | Activities covered | Rate on aggregate gaming revenue |
|---|---|---|
| Type 1 | Casino-style games and lotteries played against the house using a random number generator | 15% |
| Type 2 | House betting on events or competitions at odds established by the operator | 10% |
| Type 3 | Commission-driven products, including player-versus-player poker, bingo and betting exchanges | 10% |
| Type 4 | Controlled skill-based games | 10% |
| Special categories | Qualifying gaming conducted in controlled premises, plus lawful junkets and junket events | 5% |
Type 1 activity carries the highest rate under the new model, at 15% of aggregate gaming revenue. Types 2, 3 and 4 are grouped at 10%, while the existing 5% treatment remains available for qualifying activity in controlled gaming premises and for junkets or junket events.
One Charge Replaces the Former Two-Part Approach
Legal Notice 84 also changes the relationship between gaming tax and the gaming device levy. Rather than requiring operators to manage those charges as separate components for the same activity, Malta now places them within a consolidated gaming tax structure.
The resulting calculation is driven by two factors: the type of game being offered and the way that game reaches the player. This gives operators a single classification framework to apply when assessing qualifying activity, reducing the need to reconcile parallel charges.
The structure covers both land-based and online operations where the relevant gaming services are offered to players present in Malta. Operators must therefore review how their products are classified and ensure that internal revenue reporting reflects the correct category.
VAT Treatment Becomes Narrower and More Defined
Legal Notice 86 introduces corresponding amendments to Malta’s VAT framework. The previous gambling exemption has been narrowed, meaning that a wider range of betting and gaming services may now fall within the Maltese VAT system.
The revised treatment is particularly relevant to services such as sports betting, live casino products and certain business-to-business supplies. The new framework also clarifies the place of supply, helping determine where a service is regarded as supplied for VAT purposes.
Although the change brings more activity within the VAT net, taxable treatment can improve an operator’s ability to recover eligible input VAT. The amount recoverable will depend on the nature of the costs, the operator’s activities and the applicable VAT requirements.
Some limited categories may continue to qualify for an exemption without credit, including narrowly defined activities such as low-risk games, occasional approved junket events and in-venue betting at sports events. Operators should examine each service separately rather than treating every gambling product in the same way.
Reporting Deadlines Will Straddle Two Regimes
The transition has been arranged around the reporting period rather than applying retroactively to every outstanding return. September 2026 submissions remain subject to the former requirements and must be filed by October 20, 2026.
The regulatory Portal will continue to accept those September returns under the rules that applied during that month. Operators should not apply the new classifications or reporting format to a September submission merely because the return is filed after the October 1 commencement date.
Updated Portal functionality for the amended VAT and gaming tax requirements is scheduled to be available by November 1, 2026. The first return prepared under the revised framework will cover October activity and must be submitted by November 20, 2026.
| Reporting period | Rules to apply | Deadline |
|---|---|---|
| September 2026 | Previous gaming tax and VAT reporting requirements | October 20, 2026 |
| October 2026 | Revised framework and updated reporting requirements | November 20, 2026 |
Operational Priorities for Licensed Businesses
Operators should update their product maps, revenue calculations and accounting controls before preparing the first return under the new system. Particular attention is needed for products that combine different game mechanics, since the correct tax category may depend on both the underlying activity and the manner in which it is offered.
Businesses should also assess their VAT position, identify costs connected with taxable supplies and document any input VAT recovery claimed. The narrower exemption makes accurate service-by-service analysis more important than relying on historic treatment.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue publishing guidance during the transition. For operators, the immediate milestones are the October 20 deadline for the final September return under the old regime, the November 1 Portal update and the November 20 deadline for the first submission under the new rules.
Arthur Pendelton creates content focused on casino comparisons, betting platforms, and user-focused gambling guides.