Through Legal Notice 86 of 2026 Malta has introduced an amendment to Item 9 of Part Two of the Fifth Schedule to the VAT Act, revisiting how gambling activities are treated for VAT purposes.
The updated provision replaces the previous wording with a more unified description of the exemption, which is expected to reduce the scope of the exemption and, at the same time, to provide flexibility as the scope of exempt activities may now be determined through Ministerial approval:
“Betting, lotteries and other forms of gambling, as may be approved by the Minister.”
This amendment will come into force on 1 October 2026.
From a practical standpoint, this amendment will simplify the interpretation of which gambling services fall within the exemption and will provide gambling operators with opportunities for VAT optimisation.
While further guidance is expected from the Commissioner for Tax and Customs, get in touch with us now, ahead of the implementation date, to assess the impact of these future changes on your business.
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