Parliament adopts a completely new VAT Law — applies only from EU accession
TLDR
- Adopted 9 July 2026 with 48 votes — fully replaces the law dating from 2002.
- Full transposition of EU Council Directive 2006/112 (incl. the 2025/516 digital-age amendments).
- Rates unchanged: 21% standard, 15% and 7% reduced, 0% for exports.
- The mandatory VAT registration threshold stays at €30,000 annual turnover.
- KEY POINT: per Art. 215 the law only applies from the day Montenegro joins the EU — until then the current law remains fully in force.
On 9 July 2026 the Parliament of Montenegro unanimously (48 votes, none against or abstaining) adopted a completely new Law on Value Added Tax. It is a full replacement of the existing law which, with numerous amendments, has been in force since 2002.
The new law is a complete transposition of EU Council Directive 2006/112/EC on the common system of VAT, including its latest digital-age amendments (Directive 2025/516), plus the VAT-refund directives for foreign taxable persons (2008/9/EC and the Thirteenth Directive 86/560/EEC). Adoption is part of Montenegro's obligations under negotiating Chapter 16 (taxation).
The key news for taxpayers is that nothing changes right away: the standard rate stays at 21%, reduced rates at 15% and 7%, zero rate for exports, and the mandatory registration threshold stays at €30,000 of annual turnover. The law brings modernised place-of-supply rules, intra-EU transaction rules, an ME-prefixed VAT number and digital reporting — but all of that becomes relevant only with EU membership.
The most important provision is Article 215: the law formally enters into force on the eighth day after publication in the Official Gazette, but it APPLIES only from the day Montenegro joins the European Union. Until that day the current VAT Law remains fully in force, including the February 2026 amendments (Off. Gazette 012/26).
Practically: no action needed. Invoicing, filing and registration continue under the current rules. We are tracking the final text's publication in the Official Gazette and will update the VAT guide when anything changes in practice.