Malta simplifies igaming tax framework

(AsiaGameHub) –   Gaming operators based in Malta are set to face adjustments to their VAT and gaming tax obligations later this year.

Malta.- The Malta Gaming Authority (MGA) and the Malta Tax and Customs Administration (MTCA) have unveiled updates to the nation’s gaming tax and value-added tax (VAT) structures. These regulatory updates are scheduled to take effect on October 1, 2026.

Established via Legal Notices 84 and 86 of 2026, the revisions aim to establish a more transparent and consistent tax environment for businesses, while bolstering Malta’s appeal and competitive edge as a hub for igaming, according to the MGA.

Concerning VAT, amendments to the VAT Act (Cap. 406 of the Laws of Malta) will refine the scope of current VAT exemptions for gambling providers, with a focus on sports betting and specific casino products. This includes providing clearer guidance on how place of supply regulations pertain to these services.

The MGA stated that the objective is to ensure the principle of taxation at the place of consumption is properly upheld. The regulator noted that defining the exemption will create a “natural right of recovery of eligible input VAT costs, providing for a fair and simple mechanism for the protection of the neutrality of VAT for gaming operators,” a change finalized after industry consultation.

Simultaneously, the gaming tax framework is being updated under the Gaming Tax Regulations (Subsidiary Legislation 583.10) pursuant to the Gaming Act (Cap. 583 of the Laws of Malta). The MGA highlighted that key updates include simplified and fair gaming tax rates for both online and land-based operators serving players in Malta, alongside the merger of the current gaming tax and gaming device levy into a unified, streamlined tax structure categorized by game type and delivery method.

“This reconfiguration of the gaming tax framework is specifically designed to ensure a well-balanced overall impact on Malta’s gaming services sector, and shall apply exclusively to gaming services provided within the territory of Malta,” the MGA stated.

The authority added: “Taken together, these coordinated reforms represent a measured and forward‑looking policy response that strengthens Malta’s fiscal resilience, regulatory clarity and international standing as a leading gaming jurisdiction. They provide operators with greater certainty and efficiency, while ensuring Malta remains a stable and competitive base for gaming businesses.”

Regulators plan to issue further guidance in the near future to assist with the transition and ensure operational clarity.

In other developments, the government is assessing the potential regulation of prediction markets within Malta. Economy Minister Silvio Schembri indicated that the nation is exploring the development of a dedicated regulatory framework for the industry to determine whether such platforms should be classified as financial products or gambling. He noted that the sector is experiencing significant global growth and offers substantial potential for innovation.