Changes to Malta VAT exemption for gambling from 1 October 2026

The Legal Notice replaces the prior, broader exemption wording covering “government lotto and lotteries, agency services related thereto, and such other supplies related to gambling as may be approved by the Minister” with the new exemption wording reading - “Betting, lotteries and other forms of gambling, as may be approved by the Minister.”

In substance, this signals a narrowing of the exemption, with a consequential likelihood that a wider range of gambling supplies will now no longer be VAT exempt and will therefore be subject to Maltese VAT once the amendment takes effect on 1 October 2026.

For operators, this raises questions about which specific products will move from exempt to taxable or remain the same. It also raises discussion points around input tax recoverability and whether the narrowing of the exemption may have the consequence of increasing input tax recovery.

There is some uncertainty around the operative meaning of “as may be approved by the Minister”. There is also the question of how “other forms of gambling” will be delineated.

The publication of further guidelines should help clarify these questions, and the transitional mechanics that will apply from 1 October 2026.

• Model input VAT recovery scenarios, including partial exemption impacts and capital item adjustments, anticipating how further guidelines could shape the recovery position.
• Monitor for official guidelines to clarify scope, approval processes, and timing, particularly around transitional treatment for supplies closer to 1 October 2026.

To gain a deeper understanding of the recent changes and effectively plan for 1 October 2026, reach out to us. Our VAT and legal professionals are here to help.