Malta Exempts Events Betting From VAT Tax

Jake Cooper | 06 Jan 2018

Malta Exempts TaxThe government of Malta has now made an announcement that will no doubt please those who enjoy event betting within its regulated market. Malta has revealed in a press statement that gambling on the outcome of events is soon to be made exempt from value added taxes (VAT).

The Times of Malta has noted that, in a release published in the government gazette, the local senate has stated that as of January 1, 2018, wagering on events will become fully exempt without credit for the purposes of VAT taxation.

Once the new measure has been implemented, it will apply to services offered by physical bookmakers, betting exchanges, and all ‘equivalent facilities’ that offer such real money betting markets to punters.

Bets On Casino Games Still Taxed

Malta has always been a prominent regulatory jurisdiction when it comes to betting services, and its actions have sparked regulatory changes across all European Union member states, who are also set to adopt the new law once it has been officially implemented.

The betting activities covered by the new bill include wagers placed on both real life and virtual sporting events, as well as competitions and lotteries. Furthermore, bets on the performances of indexes and natural phenomenon betting have also become VAT exempt in Maltese lawmakers’ eyes.

With that said, wagering on the outcome of casino games such as poker or roulette, as well as games of chance in which results are determined by random number generation, will not be made exempt from VAT. This will also reply to any wagers made with the use of remote or digital gaming equipment, according to local regulators.

New Law To Reach EU Member States

The new laws governing the application of VAT in gambling have been outlined in the nation’s Value Added Tax Act. Additionally, according to the Times of Malta, the regulations will also cover an implementation of several Council of Europe guidelines on the common VAT system, which will be distributed across all European Union members.

The aforementioned COE directive will enable all member states of the European Union to exempt themselves from VAT, applying of course to lotteries, betting, and any other forms of gambling that are subject to the conditions and limitations of the new Maltese bill.

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