Malta’s updated gaming tax and VAT arrangements took effect on October 1, 2026, creating a category-based system for qualifying gaming activity involving players located in Malta. The reforms also replace separate gaming tax and device levy arrangements with one consolidated charge.
Introduced through Legal Notices 84 and 86 of 2026, the changes follow measures announced in Malta’s 2026 Budget and were developed following engagement with the gaming sector. The stated goal is a clearer and more predictable framework for licensed operators.
Tax Rates Now Depend on the Gaming Product
The revised rules calculate tax on aggregate gaming revenue. The applicable rate depends on the type of service and the manner in which it is offered.
| Gaming category | Examples | Rate |
|---|---|---|
| Type 1 | House-banked casino games and randomly generated lotteries | 15% |
| Type 2 | Event or competition betting offered at operator-set odds | 10% |
| Type 3 | Commission-based poker, bingo and betting exchanges | 10% |
| Type 4 | Controlled skill-based games | 10% |
| Special categories | Gaming in controlled premises, junkets and junket events | 5% |
Type 1 services carry the highest rate under the new model. Type 2, Type 3 and Type 4 activities are grouped under a 10% rate, while qualifying activity conducted in controlled gaming premises or classified as a junket continues to be taxed at 5%.
A Single Charge Replaces the Former Two-Part Approach
The new structure eliminates the separate gaming device levy and brings it together with gaming tax. Operators now determine their liability through one framework that considers both the game category and how the service reaches the player.
This consolidation is intended to reduce duplication and make the tax treatment easier to apply. The revised rates generally relate to qualifying activities supplied to players present in Malta, rather than an operator’s entire worldwide revenue.
Updated VAT Treatment Covers Betting and Casino Services
Malta has also revised the VAT framework for selected gambling and gaming supplies. The amendments clarify how services such as sports betting and certain casino offerings are treated for VAT purposes.
The framework addresses the place of supply, helping determine where a gaming service is considered provided. It also sets out when an operator may recover eligible input VAT, subject to the applicable conditions. In practice, the VAT changes operate alongside the revised gaming tax rules and may affect both reporting and cost recovery.
Operators Must Follow a Staged Reporting Transition
The reporting changeover does not happen for all periods at the same time. Returns for September 2026 remain subject to the previous requirements and must be submitted by October 20, 2026.
The regulatory Portal continues to process those September filings under the rules applicable during that reporting period. Updated Portal functions supporting the new VAT and gaming tax arrangements are scheduled to become available on November 1, 2026.
October 2026 will therefore be the first reporting period governed by the revised framework. The corresponding return is due on November 20, 2026 and must be filed through the updated Portal under the new requirements.
What Licensees Should Review Before Filing
Operators should confirm how each qualifying product is classified, identify revenue connected with players in Malta and update internal tax calculations before preparing the October return. They should also ensure that finance, compliance and reporting teams are working from the same category definitions.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing guidance during the transition. Their updates will be particularly relevant while the Portal moves from the September process to the revised reporting format.
Overall, Malta’s new regime introduces a 15% rate for Type 1 services, a 10% rate for Types 2 through 4 and a continuing 5% rate for controlled premises and qualifying junkets. The consolidated tax structure, revised VAT treatment and staggered filing timetable create a new compliance baseline for Malta-licensed operators.
