{"id":12568,"date":"2026-05-08T09:34:51","date_gmt":"2026-05-08T07:34:51","guid":{"rendered":"https:\/\/expatax.mt\/?p=12568"},"modified":"2026-05-08T09:34:53","modified_gmt":"2026-05-08T07:34:53","slug":"how-maltas-gaming-tax-changes-will-affect-igaming-companies","status":"publish","type":"post","link":"https:\/\/expatax.mt\/de\/how-maltas-gaming-tax-changes-will-affect-igaming-companies\/","title":{"rendered":"How Malta\u2019s Gaming Tax Changes Will Affect iGaming Companies"},"content":{"rendered":"

The reform is based on Legal Notice 84 of 2026<\/a><\/strong>, which amends the Gaming Tax Regulations, and Legal Notice 86 of 2026<\/strong><\/a>, which amends the Fifth Schedule to Malta\u2019s VAT Act. Both were published in the Government Gazette<\/a> auf 1 April 2026<\/strong>.<\/p>\n\n\n\n

Die Malta Gaming Authority<\/a> and the Malta Tax and Customs Administration have described the reform as an update to Malta\u2019s VAT and gaming tax frameworks for the gaming sector. Their stated aim is to improve clarity, competitiveness and regulatory certainty, while giving operators time to prepare before the rules take effect.<\/p>\n\n\n\n

F\u00fcr iGaming<\/a> companies, the main issue is not simply \u201cmore tax\u201d<\/a>. The more important change is that Malta is narrowing the VAT exemption for gambling services. This may affect VAT treatment, input VAT recovery, pricing, systems, reporting and how certain services are classified.<\/p>\n\n\n\n

What is changing from 1 October 2026?<\/h2>\n\n\n\n

Until now, Malta\u2019s VAT exemption for gambling has been relatively broad. Legal Notice 86 of 2026 narrows that exemption.<\/p>\n\n\n\n

From 1 October 2026, the VAT exemption without credit is expected to apply only to a limited set of activities. Deloitte, KPMG and PwC all report that the remaining exempt categories are expected to include low-risk games, approved occasional junket events and in-venue betting at sports events.<\/p>\n\n\n\n

This means that many gambling and betting services that were previously treated as ausgenommen<\/a> may become taxable where the supply is deemed to take place in Malta. This is why the reform matters. If an operator makes taxable supplies, it may also have a better right to recover input VAT on related costs. The MGA and MTCA specifically refer to a \u201cnatural right of recovery of eligible input VAT costs\u201d as one of the intended effects of the reform.<\/p>\n\n\n\n

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Key changes <\/h2>\n\n\n\n
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Area<\/th>Current position<\/th>From 1 October 2026<\/th><\/tr><\/thead>
VAT exemption for gambling<\/td>Broader exemption in practice<\/td>Narrower exemption under Legal Notice 86 of 2026<\/td><\/tr>
Online gambling and betting<\/td>Often treated as exempt, depending on activity and structure<\/td>Many supplies may become taxable if deemed supplied in Malta<\/td><\/tr>
Input VAT recovery<\/td>Often restricted where supplies are exempt without credit<\/td>Potentially improved recovery where supplies become taxable<\/td><\/tr>
Gaming tax<\/td>Existing gaming tax and device levy framework<\/td>A consolidated gaming tax structure is expected<\/td><\/tr>
Scope<\/td>Existing framework<\/td>Changes apply to gaming services provided within Malta<\/td><\/tr>
Practical impact<\/td>Mixed treatment and some uncertainty<\/td>More structured but potentially more compliance-heavy framework<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div><\/div>\n\n\n\n
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Why this matters for operators<\/h2>\n\n\n\n

For some iGaming companies, the reform will increase compliance obligations. For others, it could improve cost recovery and reduce operational inefficiencies linked to exempt treatment.<\/p>\n\n\n\n

The key issue is how gambling services are classified for tax purposes. Under the previous framework, many operators supplying exempt services could not fully recover tax incurred on business expenses. In practice, this often turned part of their operational spending into a hidden cost. The new rules may change that position for certain businesses.<\/p>\n\n\n\n

Where gaming activities become taxable in Malta, operators may gain broader recovery rights on eligible expenses connected to their operations. This can be particularly relevant for companies with significant spending on:<\/p>\n\n\n\n

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