Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026. The changes introduce different tax rates for four gaming categories, combine two previous charges into one structure, and alter how certain gambling services are treated for VAT purposes.
The reforms were introduced through Legal Notices 84 and 86 of 2026, following measures announced in Malta’s 2026 Budget. Their stated purpose is to make the tax treatment of gaming activities more consistent and easier for licensed operators to apply.
Four Gaming Categories Now Determine the Tax Rate
The revised system calculates gaming tax on aggregate gaming revenue generated from qualifying activities offered to players who are physically present in Malta. The applicable rate depends on the classification of the game rather than applying one uniform percentage across the sector.
Type 1 covers casino-style games and lotteries played against the house where outcomes are determined through a random number generator. These activities attract the highest rate under the new framework: 15% of aggregate gaming revenue.
Type 2 applies to betting against the house on events or competitions where the operator sets the odds. Revenue from these services is taxed at 10%.
Type 3 includes commission-based activities, such as player-versus-player poker, bingo and betting exchanges. These services also fall under the 10% rate. Type 4, which covers controlled skill games, is taxed at the same percentage.
Gaming conducted in controlled premises continues to be taxed at 5%. The same rate remains applicable to junkets and junket events, preserving a lower treatment for those activities.
Gaming Tax and Device Levy Are Now Combined
One of the most significant operational changes is the replacement of the former parallel charging system. The previous gaming tax and gaming device levy have been consolidated into a single gaming tax framework.
Under the new model, operators no longer calculate two separate charges for the same qualifying activity. Instead, the game category and the method used to offer the service determine the relevant tax treatment. This approach is intended to reduce duplication and provide a more direct connection between the product offered and the amount payable.
The framework applies to qualifying online and land-based gaming services supplied to players located in Malta. Operators must therefore ensure that their classification processes distinguish both the type of game and the circumstances in which it is provided.
VAT Treatment Becomes More Defined
Legal Notice 86 also changes Malta’s VAT framework for gambling and betting services. The revised rules narrow the scope of the gambling exemption, meaning that a broader range of supplies may become subject to Maltese VAT from the effective date.
Sports betting and live casino services are among the activities generally expected to receive taxable treatment, while the exemption without credit is limited to more narrowly defined situations. These include low-risk games, certain approved occasional junket events and betting conducted at sports venues.
The amendments also clarify the place-of-supply analysis for gaming services. In practice, operators must assess where each service is treated as supplied and whether VAT must be charged or accounted for. The revised treatment may also improve the ability of eligible businesses to recover input VAT, although partial attribution and other adjustment rules can affect the final position.
These VAT changes operate alongside the new gaming tax system but address a different compliance question. Gaming tax focuses on the applicable charge on qualifying gaming revenue, while VAT determines the treatment of supplies and related input costs.
Reporting Moves to a New Timetable
The transition does not require operators to recalculate every outstanding period under the new rules. Returns for September 2026 remain subject to the previous framework and must be submitted by October 20, 2026.
The existing regulatory Portal continues to accept those September filings according to the requirements that applied during that reporting period. Operators should therefore avoid applying the new classifications or rates to the September return simply because the revised framework has already entered into force.
Functionality supporting the updated gaming tax and VAT requirements is scheduled to become available on the Portal by November 1, 2026. The first return prepared under the new regime will cover October 2026 and must be filed by November 20, 2026 through the updated system.
Immediate Compliance Priorities for Licensees
Operators should update their internal game classifications, revenue calculations and VAT assessments before preparing the October return. Systems that previously separated gaming tax from the device levy may need to be redesigned so that the consolidated charge is calculated by gaming type.
Finance and compliance teams should also review whether sports betting, casino offerings and business-to-business services now create Maltese VAT obligations. The potential effect on input VAT recovery should be assessed at the same time, particularly where an operator has mixed supplies or uses partial attribution methods.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing guidance during the transition. Their instructions will be especially relevant while operators move from the September filing process to the updated Portal and prepare the first return under the revised framework.
Overall, Malta’s reform replaces a less unified structure with differentiated gaming tax rates, a single charge in place of the former gaming tax and device levy, and clearer VAT rules for selected gambling services. The key dates are October 20 for the September return under the old regime, November 1 for the expected Portal update, and November 20 for the first filing under the new rules.
