Malta’s updated gaming tax and VAT framework took effect on October 1, 2026, creating a revised compliance model for licensed operators. The reforms introduce different tax rates according to gaming activity, combine two existing gaming charges, and clarify how VAT applies to selected gambling services.
Legal Notices 84 and 86 of 2026 brought the changes into force after consultation with industry stakeholders. The measures were also included in Malta’s 2026 Budget plans and are intended to make the treatment of gaming activity more consistent and predictable.
Tax Rates Now Depend on the Gaming Category
The amended system classifies qualifying gaming services according to the type of game and the manner in which it is offered. The applicable rate is calculated on aggregate gaming revenue generated from qualifying activity involving players located in Malta.
- Type 1: Casino games, lotteries and other house games using a random number generator are subject to a 15% tax rate.
- Type 2: House-banked betting on events or competitions, where the operator establishes the odds, is taxed at 10%.
- Type 3: Commission-based products, including peer-to-peer poker, bingo and betting exchanges, attract a 10% rate.
- Type 4: Controlled skill games are also charged at 10%.
The revised scale places Type 1 services in the highest category. The three remaining online categories share the lower 10% rate, while certain land-based activities continue to receive separate treatment.
Gaming conducted in controlled premises remains subject to the existing 5% rate. The same rate continues to apply to junkets and junket events, preserving a distinction between those activities and the newly classified online services.
A Single Gaming Charge Replaces the Former Dual Approach
One of the central changes is the removal of the separate gaming device levy. Instead of handling that levy alongside gaming tax, operators now work within one consolidated structure that assigns liability according to the game type and its method of delivery.
This approach is designed to reduce duplication in the tax calculation. Operators must still identify the relevant activity accurately, but the classification now determines the charge through one framework rather than two parallel mechanisms.
The rules apply to qualifying gaming services offered to players present in Malta. They do not create a single tax rate for every activity, so operators with several product lines will need to assess each category separately when preparing their records and returns.
VAT Treatment Expands for Several Gambling Services
The VAT amendments introduced at the same time narrow the scope of the gambling exemption. Sports betting, live casino products and many other gambling supplies are generally expected to fall within the taxable VAT framework, while only narrowly defined activities may remain exempt without credit.
The revised provisions address more than the rate or exemption itself. They also establish how operators should determine the place of supply and whether eligible input VAT costs can be recovered.
- Place of supply: The rules help determine where a gaming service is treated as supplied for VAT purposes.
- Input VAT recovery: Businesses may be able to recover eligible VAT incurred on related costs when their supplies fall within the taxable framework.
- Service classification: Operators must review whether each product is covered by an exemption or treated as a taxable supply.
For many businesses, the VAT changes may involve more than a return-form update. Operators may need to review customer-location controls, invoices, accounting procedures and the supporting evidence used to calculate recoverable input VAT.
Reporting Changes Arrive in Two Stages
The transition does not move every filing immediately to the new regime. Returns for September 2026 remain governed by the previous requirements and must be submitted by October 20, 2026.
The existing regulatory Portal will continue to accept those September submissions under the rules applicable to that reporting period. Operators should therefore avoid applying the October framework retrospectively to the September return.
The revised Portal functions are scheduled to be available by November 1, 2026. October 2026 returns will be the first submissions prepared under the amended tax and VAT framework, and they will be due by November 20, 2026.
- Complete the September return using the former requirements.
- Submit that return by October 20.
- Prepare systems for the updated Portal functionality expected on November 1.
- File the October return under the new rules by November 20.
Operational Priorities for Licensed Businesses
The changes require operators to connect their product classifications with their accounting and reporting processes. Businesses offering several forms of gaming should confirm which services belong to Types 1 through 4 and separate revenue generated from players in Malta from revenue outside the relevant scope.
VAT procedures also deserve immediate attention. Operators should examine whether sports betting, casino products and related services are taxable, then review how input costs are documented and allocated. The revised treatment may improve input VAT recovery for taxable supplies, but only where the relevant conditions and records are satisfied.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing guidance during the transition. Their updates will be particularly relevant while the Portal is being adapted and operators move from the September filing regime to the October requirements.
What the October Reform Means in Practice
Malta’s new framework links gaming tax more directly to the nature of the product. Type 1 activity carries the highest charge at 15%, Types 2, 3 and 4 are taxed at 10%, and controlled premises, junkets and junket events retain the 5% rate.
At the same time, the former gaming tax and device levy have been brought together, while the VAT rules provide a clearer—though broader—tax treatment for many gambling services. The immediate compliance calendar is equally important: September returns remain due on October 20, the updated Portal is expected on November 1, and the first new-regime return must be filed by November 20.
