Malta: Betting VAT exemption to come

According to a notice in Malta’s Government Gazette published this week, Gambling on the outcome of an event, including sporting events—real life and virtual—competitions, lotteries, and performance of an index and a natural phenomenon, among others will be exempt from Value Added Tax (VAT) as from January 2018

However, gambling on the outcome of casino-type tables games, such as blackjack, poker and roulette, and any game of chance where the outcome is determined by a random generator will not be exempt from the tax. Similarly, any gambling with the use of remote gaming equipment will not be exempt.

These new rules will bring gambling in line with lotto and lotteries, which are exempt from the tax at present.

The exemption from VAT of gambling is outlined in the Value Added Tax Act, the Government Gazette’s notice shows and it is also an implementation of a Council of Europe directive on the common system of VAT.

According to this directive, EU States may exempt from VAT “betting, lotteries and other forms of gambling subject to the conditions and limitations laid down by each Member State.”

Last year, Malta’s VAT revenue represented 7.3 percent of the country’s Gross Domestic Product.