Malta’s updated gaming tax and VAT framework took effect on October 1, 2026, introducing a revised way to classify and report gaming activities. The reforms affect licensed operators serving players in Malta and establish different tax treatment according to the type of game and how it reaches the player.
The changes were introduced through Legal Notices 84 and 86 of 2026 following measures announced in Malta’s 2026 Budget. The package was developed after engagement with industry representatives and is intended to make the treatment of gaming revenue more predictable and easier to administer.
How the New Gaming Tax Model Works
The revised system calculates tax on aggregate gaming revenue and divides qualifying activities into four categories. The highest rate applies to Type 1 services, which include casino-style games, lotteries and other games played against the house using a random number generator. These activities are now taxed at 15%.
Type 2 covers fixed-odds betting against the house on sporting events, competitions or similar outcomes. Operators offering these services must apply a 10% rate. Type 3 includes commission-driven products such as player-versus-player poker, bingo and betting exchanges, while Type 4 relates to controlled skill games; both categories are also taxed at 10%.
Some activities remain subject to a lower rate. Qualifying gaming conducted in controlled gaming premises, together with legally recognised junkets and junket events, continues to attract a 5% charge on aggregate gaming revenue.
In practical terms, the classification creates a three-level structure: Type 1 activities are taxed at 15%, Types 2 through 4 at 10%, and qualifying controlled-premises or junket activity at 5%.
Gaming Tax and Device Levy Brought Together
One of the central changes is the replacement of two separate charges with a consolidated gaming tax structure. The former gaming tax and gaming device levy are no longer treated as parallel obligations for the same activity.
Instead, the applicable charge is determined by the relevant game category and the manner in which the service is offered. This approach is intended to reduce duplication and give operators a single framework for assessing qualifying gaming activity provided to players who are physically located in Malta.
Operators will therefore need to review how their products are classified, rather than relying on one general rate across all forms of gaming. Product mapping, revenue calculations and internal reporting procedures may all require adjustment.
VAT Treatment Becomes Narrower and More Specific
Legal Notice 86 also changes Malta’s VAT treatment of gambling and betting services. The previous exemption was broader, while the revised wording limits the gambling activities that may qualify for exemption without credit.
As a result, many services that were previously outside the practical scope of Maltese VAT may now become taxable. The affected area includes much of the online gambling market, particularly sports betting and live casino activity, as well as certain business-to-business services.
The revised framework clarifies the place of supply for relevant gaming services and explains when operators may recover eligible input VAT. Although the new rules can create an additional compliance obligation, taxable treatment may also improve access to input VAT recovery where the statutory conditions are met.
Operators should assess each service separately, since the VAT outcome can depend on the activity itself, the player’s location, the delivery model and whether a specific exemption applies. Approved low-risk games, occasional approved junket events and in-venue betting at sporting events are among the narrowly defined categories identified in the updated guidance.
Reporting Dates Shift in Two Stages
The reporting transition is deliberately staggered. Returns covering September 2026 remain governed by the former rules and are due on October 20, 2026. Licensees filing that period must continue using the requirements that applied before the reform took effect.
The updated Portal functionality needed for the new VAT and gaming tax framework was scheduled to become available by November 1, 2026. The first return prepared under the revised rules is the return for October 2026, which must be submitted by November 20, 2026 through the updated Portal.
This means operators face two consecutive reporting periods under different regimes. September filings should not be prepared using the new classifications, while October filings must reflect the revised rates, VAT treatment and reporting requirements.
What Operators Should Review Before Filing
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing practical guidance during the transition. Their updates will be particularly relevant while operators adapt to the new Portal and confirm how individual products fit within the revised categories.
For Malta-licensed businesses, the immediate priorities are to preserve the previous treatment for September returns, prepare for the November 1 Portal update and ensure that October revenue is classified under the new framework. Operators should also examine their VAT position, including the potential recovery of eligible input costs.
Together, the reforms create a more differentiated tax system for Malta’s gaming sector. A 15% rate now applies to Type 1 activity, a 10% rate covers Types 2, 3 and 4, and a 5% rate remains available for qualifying controlled-premises gaming and junkets. The consolidated tax model and narrower VAT exemption are accompanied by a clear reporting timetable, giving operators specific dates for moving from the old regime to the new one.
