With effect from 1 October 2026, Legal Notice 86 of 2026 introduces important amendments to Item 9 of Part Two of the Fifth Schedule to the Value Added Tax Act. These changes narrow the scope of the VAT exemption applicable to gambling activities, bringing Malta's framework more closely in line with Article 135(1)(i) of the EU VAT Directive. Updated guidelines from the MTCA are expected to be issued in due course to clarify the practical implications of the new wording.
This development reflects a broader trend towards applying a stricter interpretation of VAT exemptions. Historically, the application of VAT to gambling-related services, particularly those involving intermediaries, platforms, and service providers, has been complex and, at times, inconsistently applied. The revised wording is therefore likely to have a tangible impact on how different supplies within the gaming ecosystem are classified and taxed.
Gaming operators and their commercial partners should begin assessing how these amendments may affect their VAT position. Particular attention should be given to intermediary and agency arrangements, revenue-sharing models, and cross-border service structures. Businesses may also need to revisit contractual terms, pricing structures, and compliance processes to ensure alignment with the updated rules once they come into force.
Early preparation will be key in mitigating potential risks and ensuring a smooth transition ahead of the October deadline.
If you require assistance navigating these changes, CSB Group’s VAT team is on hand to help you assess the impact on your business and ensure your compliance position is robust and future-ready.
About the Author
This article has been authored by Matthew Farrugia, VAT Coordinator.
