The government announced that event betting will be exempt from value added tax (VAT).
Malta.- Malta’s government has announced a new measure that will see gambling on the outcome of an event being exempt from value added tax (VAT). The new regulation will take effect of January 1.
As a notice published in the Government Gazette said starting from January 1, betting bill become exempt with credit for VAT purposes. This new move will be applied to services offered by bookmakers, as well as betting exchanges. Betting on real life and virtual sports events, as well as competitions, lotteries, among other things, will be covered too.
Games of chance in which the outcome is subject to a random generator, gambling on the outcome of casino style games like poker and blackjack, and wagering with remote gaming equipment will not be exempt from VAT, the government said.
The new measures are outlined in the Value Added Tax Act, which is an implementation of a Council of Europe directive on the system of VAT. As the Council of Europe’s directive determined, an European Union State may exempt from VAT betting, lotteries and other forms of gambling subject to the conditions and limitations.