Guidelines issued for new VAT changes in gambling and betting

Following the enactment of Legal Notice 86 of 2026, the Malta Tax and Customs Administration (MTCA) has issued new Guidelines on Item 9 of Part Two of the Fifth Schedule, which take effect from 1 October 2026.

The new Guidelines confirm that the VAT exemption (without credit) will apply only to very narrowly defined activities that, in our experience, are generally not relevant to international online gambling and betting operators, namely: (i) low risk games; (ii) occasional approved junket events, and (iii) in-venue betting at sports events.

Accordingly, the supplies of most operators – including in particular sports betting and live casino – as well as B2B providers will in principle be treated as taxable for Malta VAT purposes as from 1 October 2026, resulting in a clearer VAT treatment and enhanced input VAT recovery position.

The MTCA has also issued complementary VAT guidelines concerning the re-classification of certain offerings – in particular online sports betting – as electronically supplied services as well as VAT guidelines on streamed and virtual activities, which are particularly relevant to online live casino.

While these developments generally represent very positive news for the betting and gambling sector in Malta, it is imperative for all B2C operators as well as B2B providers operating in Malta to review how the new rules will impact their VAT position, prepare for and execute any changes necessary to their pricing, accounting and billing systems ahead of the go-live date of 1 October 2026, as well consider opportunities to streamline the group structure and existing intra-group arrangements in place.

Deloitte can help

Reach out to us so that we can support you in effectively managing this change and unlocking the maximum possible value for your business.