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VAT Rates in Montenegro

Quick overview

Standard Rate Reduced Rate Other Rates
21 7

The local name for VAT in Montenegro is ”POREZU NA DODATU VRIJEDNOST”. There are basically 2 VAT rates in Montenegro:

  • Standard VAT rate is 21%
  • Reduced VAT rate is 7%

Recent developments

Temporary measures due to Covid:

  • Services associated with preparation and serving of food, drinks and beverages with the exception of alcoholic and mineral beverages (the latter with added sugar and coffee) provided at the facilities for hospitality services (this has been extended on January 8, 2022)
  • Services related to preparation and serving of food, bottle drinking water and soft drinks in the restaurants and catering facilities (this point will come into force on 1 September, 2021), etc.

For more information about (recent) rate change developments in Montenegro, please click here.

Standard rate: 21%

This is in place since January 1, 2018. Before that, the standard rate was 17%. This rate applies for all transactions that take place in Montenegro, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

Montenegro applies various exemptions with a refund of tax paid at preceding stages (zero rates).

Some of the services which benefit from 0% VAT tax reduction are:
  • Services offered in the maritime and air international traffic;
  • Goods used for consular and diplomatic needs;
  • Services and goods used in petroleum extractions in the sea.
Complete tax exemption is granted for revenues coming from services such as:
  • Banking services and financial services;
  • Health care and health services;
  • Services regarding social security;
  • Educational services;
  • Religious services, goods provided by religious institutions or involved in religious ritual;
  • Radio broadcasting services;
  • Insurance services;
  • Entertainment games and chance games services;

Reduced rate: 7%

Certain goods and services that include but are not limited to the following:

  • basic foods
  • medicines
  • supply of drinking water
  • teaching aids
  • tickets for cultural and entertainment venues
  • books, daily and periodical press,
  • public transportation
  • authorship rights in the area of education
  • literature, art and science
  • services provided in marinas
  • Services associated with preparation and serving of food, drinks and beverages with the exception of alcoholic and mineral beverages (the latter with added sugar and coffee) provided at the facilities for hospitality services (this has been extended on January 8, 2022)
  • Services related to preparation and serving of food, bottle drinking water and soft drinks in the restaurants and catering facilities (this point will come into force on 1 September, 2021), etc.

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on February 16, 2022

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