By virtue of the publication of two subsidiary legislations, Legal Notice 84 of 2026, Gaming Tax (Amendment) Regulations 2026, and Legal Notice 86 of 2026, Value Added Tax Act (Amendment of Fifth Schedule) (Amendment No. 2) Regulations, 2026, Malta is streamlining both its VAT and Gaming tax frameworks.
The amended VAT framework, sees positive key changes for Gambling operators, as the amended regulation will see changes to the exemption applicable to gaming service providers (B2Cs) and some games suppliers (B2Bs). The Malta Gaming Authority stated that the amendments “form part of the Government of Malta’s broader commitment to safeguard the long‑term sustainability, competitiveness and regulatory certainty of Malta’s gaming industry, as announced in the 2026 Budget.”
The Malta Tax and Customs Administration (MTCA) issued guidelines in conformity with Article 75(2) of the VAT Act (Chapter 406, Laws of Malta) which list the gaming offerings which will be VAT exempt without credit as from 1st October 2026, meaning that whatever is not listed as exempt without credit would automatically be an activity which gaming companies are eligible to claim input VAT on their expenses.
The updated exemption list will thus allow operators offering betting and certain casino activities to recover input VAT on the associated costs incurred in conducting their economic activity. This is a major positive shift especially for betting operators who previously could not recover certain input VAT on the costs they incurred, such as on technology infrastructure, marketing, and most operational costs.
In parallel to the changes to the VAT treatment of betting and certain casino offerings, Malta published amendments to the Gaming Tax Regulations, in order to refine the definition of qualifying activity, where it now means “...any activity which consists of providing or carrying out a gaming service from Malta or to any person in Malta, subject to the requirement of a licence...”, whilst the gaming tax for remote gaming operators offering games to players who are either established in Malta, have a permanent address in Mata or who are habitual Maltese residents, will be changing as follows:
The changes in the VAT framework will be effective as from 1st October 2026 and is a fundamental step forward for Betting and Casino operators’ commercial outlook, their cashflows and financial plans. Betting and casino operators should now start re-mapping their activities in order to capture those activities that will be eligible for input VAT recoverability.
Should you wish to learn more as to how these changes can affect your business, kindly contact our gaming and tax team by sending an email to info@gtg.com.mt
Author: Mr Reuben Portanier
Maltese Gaming Live Studios subject to new Studio Broadcasting Levy