The leading gambling hub, Malta, announced that Bookmakers and Betting exchanges will be exempted from Value Added Tax (VAT).
Starting from January 1st 2018 the Maltese government would no longer impose VAT on bets and wagers, including the services of bookmakers and betting exchanges, according to the report of The Times of Malta.
Last week it was announced on the Government Gazette that bets on actual and virtual sports events, lotteries, competitions, lotteries, performance of an index, and even natural disasters and other phenomenon would also be exempted from the tax.
The Maltese government, however, clarified that the VAT exemption under the new tax regime did not include bets on the outcome of casino table games, including blackjack, roulette, poker, or any other casino-style game of chance. Any gambling services provided through the use of remote technology would still pay the VAT, the government added.
Government lotto and lotteries are currently exempted from the tax.
The Value Added Tax Act was enacted in order to keep up with the Council of Europe directive on the common system of VAT. According to the Council of Europe’s directive, a EU State may exempt betting, lotteries and other forms of gambling subject from VAT although such measures are still subject “to the conditions and limitations laid down by each Member State.”
Malta’s gaming industry accounted for over 12 percent of the nation’s economy in the first half of 2017.