VAT SERVICES

VAT is a tax applied when goods or services are sold or imported. In some countries, the VAT can be applied to exports as well, but this is not the case with Montenegro. The tax amounts to a certain percentage of the value of the sold product.

For companies that have revenues exceeding €30,000 per year, the standard VAT rate is 21%, with possible rate reductions at 7% or even complete tax relief depending on the industry.

AZ Group can offer all assistance required for obtaining the VAT number, VAT invoicing as well as any other VAT-related issue.

Montenegro VAT FAQ

What is the standard VAT rate in Montenegro?

The standard VAT rate in Montenegro is 21%​​.

Are there any reduced VAT rates, and what goods or services do they apply to?

Yes, a reduced VAT rate of 7% applies to certain goods and services like food, medication, hotel accommodation, bread, milk, books, and egg supplies​1​​3​​2​.

What is the threshold for mandatory VAT registration?

Companies with revenues exceeding €30,000 per year are required to register for VAT.

Are there any recent amendments to the VAT Law in Montenegro?

As of June 4, 2021, amendments to the VAT Law raised the threshold for VAT registration from €18,000 to €30,000. Also, a set of tax amendments extending the scope of the reduced VAT rate and introducing progressive taxation of corporate profits were approved and published on December 31, 2021​3​​5​.

Are exports subject to VAT in Montenegro?

No, exports as well as certain financial services are exempt from VAT in Montenegro​1​.

How can I obtain a VAT number and get assistance with VAT-related issues in Montenegro?

AZ Group offers assistance in obtaining the VAT number, VAT invoicing, and handling other VAT-related issues. Their services include representation and support with the demands, objections, and decisions of the Montenegrin Tax Administration, as well as assistance in submitting and filling the tax applications and adjusting with the local tax regulations.