Montenegro Introduces New VAT Payment Rules

The Montenegrin authorities have adopted a package of amendments to the Tax Code. In particular, the amendments will change the rules of value added tax payment. The country introduces a reduced tax rate amounting to 7%. The companies from the tourism and services sectors can benefit from this exemption. The exceptions will include the catering establishments that serve alcoholic and carbonated beverages, coffee, as well as carbonated beverages with added sugar.

In addition, Montenegro will introduce a zero tax rate on the supply of goods or services under the donation contract with state bodies and organizations. The medical companies and organizations working to combat the consequences caused by epidemics of infectious diseases will also be able to take advantage of this exemption.

The amendments will take effect on November 4, 2020, until then, there will be a transition period in Montenegro. The companies will be able to file VAT returns in electronic format.

Law & Trust offers its services to the clients working in Montenegro. Our specialists will tell you more about who can take advantage of these simplified VAT rates and help to transfer the company to new working conditions.