VAT in Montenegro — rates & filing
https://eporezi.me/en/vodici/pdv
Guide to VAT registration, calculation and filing in Montenegro. 4 rates: 21/15/7/0%, registration threshold €30,000, monthly filing by the 15th (the tax period is the calendar month).
Key facts
- VAT rates: 21% standard, 15% tourism, 7% basic groceries, 0% exports.
- VAT return and payment: monthly by the 15th — no quarterly filing exists.
- Mandatory once turnover exceeds €30,000 in 12 months; voluntary locks in for 3 years.
- File PR-PDV by the 20th; decision in 7 days, VAT number = PIB + "ME".
Procedure
Mandatory VAT registration arises when turnover exceeds €30,000 in the previous 12 months (Art. 42 of the VAT Law). Voluntary registration is possible at any time regardless of turnover — but a voluntarily registered taxpayer must stay in the VAT system for at least 3 years (Art. 42(3)).
You need to prepare the company registration certificate, articles of incorporation and an extract from the CRPS register. For voluntary registration, a statement of reasons is also required.
The application is submitted to the Tax Administration electronically via the eUprava portal or in person at the local branch. The PR-PDV form is used. Deadline: by the 20th of the calendar month following the month in which turnover exceeded €30,000 (Art. 55(1)). If you fail to file, the Tax Administration registers you ex officio.
The Tax Administration processes the application and issues the VAT registration decision within 7 days of receiving it (Art. 55(3)). The VAT number is your PIB (tax ID) with the prefix "ME" (Art. 55(7)).
After registration, VAT must be shown on all invoices. An invoice must contain: name and TIN of seller and buyer, date, description of the service/good, VAT rate and amount, total amount.
VAT rates from Jan. 2025: 21% (standard), 15% (tourism, hospitality), 7% (basic food, medicine, books), 0% (exports).
The tax period is the calendar month (Art. 33(2)) — the return (PR PDV-2 form) is filed electronically by the 15th of the following month for the previous month, and the liability is paid by the same day (Art. 35 and 36). It is filed even if there is no VAT to pay. There is no quarterly return. VAT liability = output VAT − input VAT.
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VAT rates (from Jan. 2025)
| Rate | Application |
|---|---|
| 21% | Standard — most goods and services |
| 15% | Tourism, hospitality (new rate from Jan. 2025) |
| 7% | Basic food, medicine, books, water |
| 0% | Exports, international transport |
Deadlines and thresholds
| Category | Deadline / Threshold |
|---|---|
| Mandatory registration | Turnover > €30,000 in the previous 12 months (Art. 42) |
| Registration application (PR-PDV) | By the 20th of the month after the month the threshold was crossed (Art. 55(1)) |
| Registration decision | Within 7 days of receipt; VAT number = PIB + "ME" (Art. 55) |
| VAT return (PR PDV-2) and payment | Monthly — by the 15th of the month for the previous month (Art. 33, 35, 36); no quarterly filing |
| Voluntary registration | Binding for at least 3 years (Art. 42(3)) |
Additional notes
VAT exemptions: financial services, insurance, healthcare services, educational services, postal services, real estate transactions (except first sale of new buildings).
If input VAT exceeds output VAT, you are entitled to a refund of the difference.
Services to foreign companies (B2B, e.g. advertising, consulting): if the recipient is a taxable person established outside Montenegro, the place of supply is the recipient's seat (Art. 17(2) of the VAT Law) — the service is NOT subject to Montenegrin VAT, and the invoice is issued without VAT. Keep proof of the recipient's tax status (their VAT/tax ID) on file.
On 9 July 2026 Parliament adopted a completely NEW VAT Law (full transposition of EU Directive 2006/112). It formally enters into force 8 days after publication in the Official Gazette, but per Art. 215 it only applies from the day Montenegro joins the EU — until then the current law stays in force unchanged. Rates (21/15/7/0%) and the €30,000 registration threshold remain the same under the new law too.
Required Documents
- PR-PDV form (registration application)
- Company registration certificate
- Articles of incorporation
- CRPS register extract
- Input and output invoice ledgers
- VAT return PR PDV-2 (monthly)
Legal Basis
- Law on Value Added Tax (Zakon o porezu na dodatu vrijednost) — consolidated text through Off. Gazette 12/26 (Art. 33, 35, 36, 42, 50, 55)
- New VAT Law (adopted 9.7.2026, applies from EU accession) — draft
- Regulation on Application of the VAT Law (Pravilnik o primjeni Zakona o PDV)
Competent Institutions
- Tax Administration of Montenegro
VAT registration and collection
- eUprava
Electronic filing of returns
FAQ
When is VAT registration mandatory?+
When turnover exceeds €30,000 in the previous 12 months. The registration application (PR-PDV form) must be filed by the 20th of the month following the month in which you crossed the threshold (Art. 55 of the VAT Law). Voluntary registration is possible with lower turnover, but it binds you to stay in the VAT system for at least 3 years (Art. 42(3)).
What VAT rates apply in Montenegro?+
Since January 2025: 21% standard, 15% tourism and hospitality, 7% basic groceries, medicines and books, 0% exports.
How often are VAT returns filed?+
Always monthly — the tax period is the calendar month (Art. 33 of the VAT Law). The return (PR PDV-2 form) is filed electronically by the 15th of the following month and the liability is paid by the same day. It is filed even if there is no VAT to pay. There is no quarterly VAT return in Montenegro.
What does the VAT number look like and how long does registration take?+
The Tax Administration issues the registration decision within 7 days of receiving the application (Art. 55(3)). The VAT number is your PIB (tax ID) with the prefix "ME" (e.g. ME12345678).
What if input VAT exceeds output VAT?+
You are entitled to a refund of the difference. The VAT liability equals output VAT minus input VAT. The surplus is carried forward or a refund is requested in the return itself (line 26) — refunds are due within 60 days, or 30 days for predominant exporters and taxpayers with more than three consecutive credit periods (Art. 50).
Is VAT charged on services to foreign companies (B2B)?+
No — if the recipient is a taxable person established outside Montenegro, the place of supply is the recipient's seat (Art. 17(2) of the VAT Law), so the service is outside the scope of Montenegrin VAT.