Malta limits the exemption from VAT applicable to gambling activities

“The terms used to specify the exemptions envisaged by Article 13 of the Sixth Directive are to be interpreted strictly since they constitute exceptions to the general principle that turnover tax is levied on all services supplied for consideration by a taxable person." CJEU case Stichting Uitvoering Financiële Acties (SUFA) — Case 348/87.

Effective from 1^st October 2026, the exemption from VAT applicable to supplies of betting, lotteries and other forms of gambling is severely limited as per legal notice 86 of 2026 and the interpretative guidelines published on the 6^th April 2026 by the MTCA. 

This means that an increasing number of gambling supplies, that are deemed to take place for VAT purposes in Malta, will from October be deemed to be taxable supplies. This will have an impact on the obligation to collect VAT on bets placed by punters in Malta, but will also mean that B2C operates should expect a better right to recover input VAT from this autumn. 

The interpretative guidelines limit the exemption to the following supplies (with our comments in italics): 

1. Low risk games as defined in the Fifth Schedule to the Gaming Authorisations Regulations (Subsidiary Legislation 583.05 or ‘SL583.05’);  

   
   

   This is generally expected to be limited to tombola at fund raising and similar events, raffles with limited stakes and games of a marketing and promotional nature with low value prizes 

   
   

2. ii. Junket events required to be approved in accordance with the Gaming Authorisations Regulations (SL583.05) held on an occasional basis. Junket events shall be considered as being held on an occasional basis where they are not organised on a routine basis and which, due to their scale and nature, require specific planning and organisational arrangements; and  

   
   

   By definition this relates to special events that are one off and non-routine, which require MGA prior approval. Examples could include one-off games or tournaments organised for a pool of players. 

   
   

3. iii. The provision of any facilities for gambling on the outcome of a real-life event, which facilities can only be physically accessed at the place where the event physically takes place, including the services of book makers, betting exchanges and any equivalent facilities. The term ‘event’ shall mean a sporting event or competition. 

   
   

   The live event betting exemption is limited to betting place physically at betting booths at the place where the live event is taking place. An example would be betting on the result of a football match at the national stadium when the bet is placed at a booth located at the stadium. It is understood that this does not include live casino betting. 

Speak to our VAT team at Quazar to understand how these changes could impact your gambling supplies and prepare in advance for the upcoming changes. 

Get in Touch:

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Josef Mercieca

jmercieca@quazar.mt / +356 2388 4600