Malta’s updated gaming tax and VAT framework took effect on October 1, 2026, giving licensed operators a revised set of rates, classifications and filing responsibilities. The changes were introduced through Legal Notices 84 and 86 of 2026 following commitments announced in Malta’s 2026 Budget.
The reform is intended to make the taxation of gaming activity more predictable. It also replaces the previous parallel treatment of gaming tax and the gaming device levy with a consolidated structure based on the game category and how the service reaches the player.
How the New Gaming Categories Determine Tax
The revised framework applies gaming tax to aggregate gaming revenue generated from qualifying activities offered to players physically present in Malta. Rather than applying one broad rate, the rules divide activities into four types.
- Type 1: Casino-style games, lotteries and other house-banked products using a random number generator are subject to a 15% rate.
- Type 2: Betting against the house on events or competitions at odds determined by the operator is taxed at 10%.
- Type 3: Commission-based services, including player-versus-player poker, bingo and betting exchanges, are taxed at 10%.
- Type 4: Controlled skill-based games attract a 10% rate.
These classifications place Type 1 services at the highest rate, while Types 2, 3 and 4 share the lower standard rate. Activities carried out in controlled gaming premises continue to qualify for a 5% rate. The same rate applies where an activity is lawfully treated as a junket or junket event.
One Tax Structure Replaces the Former Dual Approach
Before the reform, operators had to consider gaming tax alongside a separate levy connected with gaming devices. The revised model brings those charges together, so the applicable gaming tax is determined through one framework rather than two parallel obligations.
This consolidation should make classification more important in day-to-day compliance. Operators must identify the relevant game type, establish how the activity is offered and calculate the charge using the applicable percentage of aggregate gaming revenue.
The new structure covers qualifying online and land-based activities supplied to players in Malta. It is therefore not simply an adjustment for one product category; it changes the way operators assess a range of gaming services offered within the framework’s scope.
VAT Changes Affect Gaming Services and Input Costs
The same legislative package also updates Malta’s VAT treatment of gaming. The revised approach clarifies how selected services, including sports betting and certain casino products, should be treated for VAT purposes.
Operators must also review the rules that determine where a gaming service is considered supplied. These place-of-supply provisions can affect whether a transaction falls within the relevant Maltese VAT treatment.
Another significant element concerns the potential recovery of eligible input VAT. Where the applicable conditions are met, operators may be able to reclaim qualifying VAT costs. This means the compliance review must cover not only output treatment, but also supporting records, cost allocation and recovery eligibility.
Together, the gaming tax and VAT measures create a coordinated framework: gaming tax is tied to the activity’s classification, while VAT treatment depends on the nature and place of the supply and any applicable recovery rules.
Key Dates for the First Returns Under the Reform
The transition is deliberately staggered. September activity remains subject to the previous requirements, while October activity is the first reporting period covered by the revised framework.
- September 2026 returns: These must still be prepared under the rules that applied during September and filed by October 20, 2026.
- Existing Portal process: The regulatory Portal continues to accept September submissions using the requirements for that reporting period.
- Portal update: Functionality supporting the revised gaming tax and VAT framework is scheduled to become available by November 1, 2026.
- October 2026 returns: The first submissions under the new framework are due by November 20, 2026 and are expected to use the updated Portal.
Operators should avoid applying the new rates retroactively to September returns. The relevant reporting period determines which requirements and calculations apply, so internal systems should clearly separate September data from October data.
Practical Compliance Priorities for Licensees
Licensed operators should begin by mapping each product to the correct gaming category. A review should cover casino games, random-generator content, fixed-odds betting, peer-to-peer products, exchanges, bingo and skill-based offerings, with attention to whether an activity is supplied through controlled premises or qualifies as a junket.
Financial and regulatory teams should then align revenue calculations with the new consolidated structure. This includes confirming the treatment of aggregate gaming revenue, checking the applicable rate and removing processes that separately calculated the former device levy where the new framework replaces it.
VAT procedures also require attention. Operators should reassess supply locations, the treatment of sports betting and casino services, and the documentation needed to support eligible input VAT recovery.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue providing guidance during the transition. Their instructions will be particularly relevant while the updated Portal is being introduced and operators are moving from the September regime to the October requirements.
What the Reform Means for Malta’s Gaming Market
Malta’s October 2026 changes create a more differentiated tax system. Type 1 activities now carry a 15% rate, Types 2, 3 and 4 are taxed at 10%, and controlled-premises activity and qualifying junkets retain the 5% rate.
For operators, the immediate priorities are straightforward: complete September returns under the former rules by October 20, prepare for the Portal update expected on November 1, and submit the first return under the revised framework by November 20. Product classification, revenue reporting and VAT documentation will be central to a smooth transition.
