In particular, certain supplies which were historically exempt from VAT will now be brought into the VAT net, in Malta.
The table below provides a general summary of supplies relating to gambling which shall remain exempt from VAT and those which shall attract VAT:
The major implications of these changes are as follows:
- Gambling providers which supply services listed in the taxable section above need to account for VAT on supplies to customers where the 'place of supply' is deemed to be Malta and forward the relevant VAT due to the local VAT authorities.
- Gambling companies providing services which are now deemed to be subject to VAT in Malta shall have a certain right to claim VAT incurred on their purchases.
- Gambling companies shall enjoy a VAT exemption on the acquisition of services which are strictly required, related and essential to gambling/betting, where the acquisitions form part of an underlying gambling/betting transaction which is deemed to be exempt from VAT in Malta.