VAT in Montenegro

1. What is the VAT in Montenegro?

Montenegro introduced VAT in April 2003. The standard VAT rate is 17% for a wide range of services and goods. A reduced VAT rate of 7% is charged for tourism, food, medicine, textbooks or public transportation. It is also important to mention that exported goods are zero-rated as far as the VAT in Montenegro is regarded, as well as fuel. Financial services or sale of land are exempt from VAT in Montenegro.

2. How can I get a VAT refund in Montenegro?

VAT can be refunded in Montenegro if a representative of the company submits an application form. The claim must be sent to the Ministry of Finance in Montenegro. This institution is responsible with prescribing conditions for VAT refund applications in Montenegro.

3. How can I register for VAT in Montenegro?

All companies that activate in areas which are subject to VAT in Montenegro must register for VAT. Also, if the revenue exceeds 18,000 EUR, it is mandatory to register for VAT in Montenegro. After the company’s registration company is issued, the Commercial Register in Montenegro announces the tax authorities about the incorporation of the new company. After that, it is up to the company to register for VAT in Montenegro or not. If it is the case, VAT registration in Montenegro will start by filing an application form provided by the tax authorities. The VAT registration form usually requires information about the name of the company as it has been recorded at the Court Register. The submission can be done by the company’s owner or by a legal representative appointed by a power of attorney. Anyhow, the VAT registration in Montenegro is completed when the VAT number is issued.

4. How does intra-community VAT work in Montenegro?

Montenegro is not a member state of the European Union, therefore it does not benefit from special VAT on trading with the member states as part of intra-community acquisitions.

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