The Revenue and Customs Administration reminds taxpayers of the Law on Value Added Tax, which introduces a reduced VAT rate of 7% for turnover of food and specific non-alcoholic drinks in restaurants and catering establishments starting from January 1, 2024. The law clearly defines the types of turnover eligible for the reduced rate and specifies the establishments where it applies. Alcoholic beverages, sugary carbonated drinks, and coffee-added beverages remain taxed at the standard rate until the end of 2023. From 2024, only non-alcoholic non-carbonated drinks specified in the Rulebook will qualify for the reduced rate in approved restaurants and catering establishments. Bottled water sales continue to be taxed at the standard rate of 21%.
Source Fiscal Requirements
Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
Latest Posts in "Montenegro"
- Montenegro Expands VAT to Construction Land Sales Effective April 2026: Key Amendments Overview
- New VAT Representative Rules for Non-Residents Providing B2C Services in Montenegro Effective 2026
- Systematized Rules for Determining Place of Supply of Services Effective from February 2026
- Output VAT Reduction Allowed for Uncollectible Receivables Subject to Litigation Before Insolvency Proceedings
- New Rules for Adjusting Input VAT Deductions Effective from 6 February 2026
