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Legal Notice 86 of 2026 was published today, introducing amendments to the Fifth Schedule to the Value Added Tax Act (Cap. 406). The amendments narrow the existing VAT exemption applicable to gambling and betting activities and are expected to bring significant changes to the VAT treatment of gambling, betting, and related supplies in Malta.
Background
Currently, Item 9 of Part Two of the Fifth Schedule, read together with the Guidelines on the VAT Treatment of Gambling and Betting Activities, provides a broad exemption under which various activities, including land-based casino operations, remote live casino services, the provision of facilities for bets and wagers, lotto and lottery games, and bingo, are treated as exempt when supplied in Malta. This broad exemption has historically rendered input VAT recovery challenging for operators active in the sector.
Key Change
As a result of the amendments introduced by Legal Notice 86 of 2026, the scope of the exemption applicable to gambling supplies is expected to be narrowed considerably. This narrowing of the exemption may improve the ability of gaming operators established in Malta to reduce VAT leakage on expenses that are currently treated as non-recoverable. This represents a significant development for the gaming industry and signals a notable shift in Malta’s VAT policy in this area.
Entry into Force
The amendments will come into force on 1 October 2026.
Further Guidance
Further clarity on the scope and implementation of the new provisions is expected to be provided through explanatory guidelines to be issued in due course by the Commissioner for Tax and Customs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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