Four Malta Gaming Tax Categories Operators Must Know

Malta’s updated gaming tax and VAT framework took effect on October 1, 2026, giving licensed operators a revised system for calculating tax, handling VAT and submitting regulatory returns. The changes were introduced through Legal Notices 84 and 86 of 2026 after industry consultation and formed part of the measures announced in Malta’s 2026 Budget.

Tax Now Follows the Gaming Activity

The new structure replaces the previous approach with rates based on the type of gaming service and how it is offered. For qualifying activities provided to players in Malta, the applicable rate is calculated on aggregate gaming revenue.

1. Type 1 gaming: Casino-style products and lotteries played against the house using a random number generator are taxed at 15%.
2. Type 2 gaming: Operator-priced betting against the house on events or competitions attracts a 10% rate.
3. Type 3 gaming: Commission-based products, including player-versus-player poker, bingo and betting exchanges, are taxed at 10%.
4. Type 4 gaming: Controlled skill games are subject to a 10% rate.

Gaming conducted at controlled premises, together with junkets and junket events, continues to carry the existing 5% rate. This leaves Type 1 activities at the highest rate, while Types 2, 3 and 4 share the lower standard rate.

Gaming Tax and Device Levy Are Combined

Operators no longer need to manage separate charges for gaming tax and the gaming device levy. The revised framework brings both elements into one consolidated gaming tax system.

This unified model is intended to make the liability easier to identify. Instead of applying parallel charges to the same operation, licensees determine the relevant game category and the manner in which the product reaches the player.

VAT Treatment Becomes More Specific

The VAT amendments clarify how Malta treats a range of gambling and gaming supplies, including sports betting and selected casino services. The revised rules also narrow the scope of the gambling exemption, meaning many supplies that were previously exempt may now fall within Malta’s VAT system.

Operators must also assess the relevant place-of-supply rules. These provisions help determine where a service is considered supplied for VAT purposes. Where the conditions are met, the framework can also allow recovery of eligible input VAT costs.

As a result, businesses should review their product classifications, customer-location processes, invoicing controls and input-tax calculations rather than treating VAT and gaming tax as one combined compliance issue.

Reporting Moves to a Staged Timetable

The reporting transition is deliberately split between the old and revised regimes. Operators should follow this sequence:

1. September 2026 returns: These remain subject to the former rules and must be filed by October 20, 2026.
2. Existing Portal process: September submissions continue to be accepted through the regulatory Portal using the requirements applicable to that reporting period.
3. Portal update: Functionality for the revised VAT and gaming tax requirements is scheduled to become available by November 1, 2026.
4. October 2026 returns: The first returns under the new framework are due by November 20, 2026 and must be submitted through the updated Portal.

In practical terms, September is the final reporting period under the former system. October is the first period requiring operators to apply the new classifications, rates and reporting requirements.

Compliance Priorities for Licensed Businesses

The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing guidance as operators adjust to the new framework. Their updates will be particularly relevant while the Portal moves from the former reporting configuration to the revised version.

The main preparation tasks are straightforward: identify each qualifying gaming activity, apply the correct rate to aggregate gaming revenue, review whether supplies are taxable for VAT purposes and confirm whether input VAT recovery is available. Operators should also ensure that internal systems can distinguish the September return from the October return.

Overall, the reforms create a category-based tax model, retain a 5% treatment for controlled premises and junket activity, consolidate the former gaming charges and provide more defined VAT rules. The immediate deadlines are the October 20 filing date for September returns and the November 20 deadline for the first return prepared under the new regime.