Malta introduces tax reform for gaming sector
In Malta, the tax authority MTCA and regulator MGA announced a tax reform for the gaming sector effective from October 1, 2026.
VAT changes for gambling
The VAT reform will clarify the existing tax exemption for sports betting and certain casino products.
What will change
Rules for determining the tax jurisdiction of online services based on the player’s location will be updated.
The application of the place-of-consumption taxation principle will also be clarified.
VAT exemption
According to Zampa Partners, the exemption will remain only for bets placed at sports venues.
- stadiums;
- racecourses.
Online betting and land-based betting shops will be subject to VAT.
At the same time, operators will be able to recover input VAT on expenses.
Gaming tax changes
MGA is updating the gaming tax structure under the new rules.
Unified tax model
The reform will combine:
- the existing gaming tax;
- the gaming device levy.
A single tax structure with unified rates will be introduced.
Who the changes apply to
The new rates will apply to:
- land-based operators;
- online operators.
Classification will depend on the type of game and the mode of offering.
Implementation of the reform
The changes will come into force on October 1, 2026.
Geographical scope
The reform will apply only to services provided to players located in Malta.
Operator preparation
Operators are given time to adapt and align their processes with the new rules.