Christmas Comes Early For Malta Bookies With Planned Vat Exemption
In an effort to get more with the times, the Maltese Government has announced plans to modify a law that dates back to 1998 when Malta was not a well-known gambling hub. According to a notice published in the Government Gazette, as of January 1 the placing of bets and wagers including the services of bookmakers, betting exchanges and ‘equivalent services’ will be exempt from VAT. In addition events on which betting and placing wagers will also be exempt and these include real life and virtual competitions, lotteries, performance of and index and a natural phenomenon.
The exemption will not cover any casino games or game of chance where the outcome is determined by a random generator. Also excluded from the new guideline is any gambling that uses remote gaming equipment.
Currently gambling services are already exempt from Vat but are subject to a gaming tax. These new regulations are set to be in line with the current gambling market and not like in 1998 where online gambling and the Malta Gaming Authority were not present. These new guidelines will fall under the Value Added Tax Act and will comply with the EU’s Vat directive that obliges member states to exempt gambling services from VAT.