Malta to make event betting VAT-free

11 December 2017

Malta’s government has announced that gambling on the outcome of an event is to become exempt from value added tax (VAT).

According to the Times of Malta, a notice published in the Government Gazette said that as of January 1, wagering will become exempt without credit for VAT purposes.

The new measure applies to services offered by bookmakers, as well as betting exchanges and ”equivalent facilities”.

Activities covered include betting on both real-life and virtual sports events, in addition to competitions, lotteries, performance of an index and also natural phenomenon.

However, gambling on the outcome of casino-style games such as poker, as well as games of chance where the outcome is determined by a random generator, and also wagering with the use of remote gaming equipment, will not be exempt from VAT.

The new VAT laws are outlined in the Value Added Tax Act and, according to the Times, is also an implementation of a Council of Europe directive on the common system of VAT.

This directive enables European Union Members States to exempt from VAT “betting, lotteries and other forms of gambling subject to the conditions and limitations”.

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