VAT in Montenegro — rates & filing
Guide to VAT registration, calculation and filing in Montenegro. 4 rates: 21/15/7/0%, registration threshold €30,000, monthly or quarterly filing.
Procedure
Mandatory VAT registration arises when annual turnover exceeds €30,000 in the previous 12 months. Voluntary registration is possible at any time regardless of turnover.
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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/year |
| Monthly filing | Turnover > €500,000/year — by the 15th |
| Quarterly filing | Turnover ≤ €500,000/year — by 15th after quarter |
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 (monthly or quarterly)
Legal Basis
- Law on Value Added Tax (Zakon o porezu na dodatu vrijednost) — currently in force
- 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 annual turnover exceeds €30,000 in the previous 12 months. Voluntary registration is possible at any time regardless of turnover.
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?+
Monthly if annual turnover exceeds €500,000, quarterly if it is up to €500,000. The deadline is the 15th of the month for the previous period.
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.
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.