New Guidelines issued by the VAT Department on supplies relating to Gambling

The VAT Department has on the 21st November 2017 issued new guidelines with respect to supplies related to gambling which with effect from 1 January 2018 shall be exempt without credit supplies for Maltese vat purposes.  Item 9 of Part 2 of the 5th Schedule to the Value Added Tax Act, provides that Government lotto and lotteries, […]

Written By ACT Team

On November 27, 2017
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The VAT Department has on the 21st November 2017 issued new guidelines with respect to supplies related to gambling which with effect from 1 January 2018 shall be exempt without credit supplies for Maltese vat purposes. 

Item 9 of Part 2 of the 5th Schedule to the Value Added Tax Act, provides that Government lotto and lotteries, the supply of agency services related thereto, and such other supplies related to gambling as may be approved by the Minister are exempt without credit supplies.  The new guideline provides a list of supplies which when supplied in Malta shall also be treated as exempt without credit supplies with effect from 1st January 2018.

  1. The provision of any facilities for the placing of bets and wagers, including the services of book makers, betting exchanges and any equivalent facilities. The ‘placing of bets and wagers’ refers to gambling on the outcome of an event, which outcome is unknown at the time of the placing of the bet or wager.

  2. The granting of the right to participate in a lotto or lottery, including Grand Lottery, Super 5, scratch cards, keno and any other lottery-type games;

  3. The granting of the right to participate in a bingo game;

  4. The provision to players of devices or equipment for the playing of casino-type games of chance, the outcome of which is determined by a random generator, including tables for the playing of roulette, blackjack, baccarat, poker when played against the house, and slot machines;

  5. Supplies which are strictly required, related and essential to, and which form part of an underlying gambling or betting transaction falling within the above, as shall from time to time be determined by the Malta Gaming Authority.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].