FISCAL SOLUTIONS...
News
Public Montenegro Author: Nikolina Basić
Montenegro's parliament has approved a new 15% VAT rate, effective January 1, 2025, applying to services like accommodation, educational activities, and non-alcoholic beverages. The 7% VAT rate will remain for essentials like basic food, medicines, and public transportation. This reform aligns Montenegro's tax framework with EU Directive 2006/112, supporting its EU membership application while adjusting the tax structure for broader economic goals.
Category:

Fiscal subject related

General information

Views: 20
Content accuracy validation date: 21.11.2024
Content accuracy validation time: 08:08h

Montenegro's parliament has approved the introduction of a new 15% Value Added Tax (VAT) rate, which will come into effect on January 1, 2025. This change will impact a variety of products and services that were previously taxed at 7%.

The new 15% VAT rate will apply to:

  • Books
  • Hotel and accommodation services
  • Non-alcoholic beverages
  • Food preparation services
  • Copyrights
  • Educational services
  • Marina services
  • Solar panels
  • Hairdressing services

The existing 7% VAT rate will continue to apply to essential goods, including:

  • Basic food items
  • Medicines
  • Medical devices
  • Textbooks
  • Non-bottled drinking water
  • Public transportation
  • Animal feed
  • Menstrual products

The adjustment aims to align Montenegro's tax system with EU Directive 2006/112, supporting the country's application for EU membership. Additionally, the reform seeks to reduce the overall tax burden on wages as part of a broader fiscal strategy to enhance Montenegro's economic framework and facilitate its integration into the European Union.

This significant tax reform marks a step forward in Montenegro's efforts to modernize its economy and align with European standards.

Other news from Montenegro