Malta’s updated gaming tax and VAT framework took effect on October 1, 2026, introducing clearer classifications, revised rates and new compliance procedures for licensed operators.
The changes arise from Legal Notices 84 and 86 of 2026, which were published as part of the measures announced in Malta’s 2026 Budget. The reforms were developed following engagement with the gaming industry and are intended to make the taxation of gaming services more predictable.
How the New Gaming Tax Structure Works
The revised regime combines the former gaming tax and gaming device levy into one streamlined charge. The applicable rate now depends on the game category and the manner in which the activity is offered to players in Malta.
- Type 1: House-banked casino games and lotteries using a random number generator are subject to a 15% rate.
- Type 2: Operator-priced betting on events or competitions 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 taxed at 10%.
The tax is calculated on aggregate gaming revenue. Gaming conducted in controlled premises, together with qualifying junkets and junket events, continues to carry the existing 5% rate.
This classification replaces the previous approach in which separate charges could apply to the same activity. Operators can now assess their liability through a single framework tied to the relevant game type.
VAT Treatment Becomes Narrower and More Defined
Legal Notice 86 also changes Malta’s VAT treatment of gambling and betting services. The former exemption was broader; from October 1, the exemption applies only to approved betting, lotteries and other forms of gambling within the revised rules.
As a result, a wider range of gaming services may fall within the Maltese VAT system. The updated approach is particularly relevant to sports betting, casino offerings and business-to-business gaming services, while eligible operators may gain greater scope to recover input VAT.
The framework also clarifies the place of supply, helping determine where a service is treated as supplied for VAT purposes. Operators should review their product classifications, customer-location procedures and input-cost records before submitting returns under the new system.
Reporting Changes Begin with October Activity
The transition is split between two reporting periods, so operators must use different procedures for September and October activity:
- September 2026 returns: These remain subject to the former rules and must be submitted by October 20, 2026.
- Portal transition: September submissions continue through the existing reporting arrangements and reflect the requirements in force during that month.
- Updated Portal: The revised reporting functionality is scheduled to become available by November 1, 2026.
- October 2026 returns: These are the first returns governed by the new framework and are due on November 20, 2026.
The practical dividing line is therefore October 1: September activity stays under the old regime, while October activity must be reported using the new classifications and requirements.
What Operators Should Review Now
Licensed operators should map each product to the correct gaming tax category, confirm how aggregate gaming revenue is calculated and separate activities that retain the 5% treatment. Internal finance, tax and compliance teams should also check whether VAT registration, invoicing and input-tax recovery processes need adjustment.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue providing transition guidance. Their updates will be especially important while operators move from the old reporting process to the revised Portal.
A More Unified Compliance Model
Malta’s reform package creates a single gaming tax structure while introducing a more restricted VAT exemption. Type 1 activities now carry the highest rate at 15%, Types 2 through 4 are taxed at 10%, and controlled premises and qualifying junkets remain at 5%.
For immediate compliance planning, the main dates are October 20 for September returns, November 1 for the updated Portal functionality and November 20 for the first return under the revised framework.
