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.
VAT rate updates in Montenegro-officially approved
Public
Montenegro
Author: Nikolina Basić
Category:
Fiscal subject related
General information
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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.
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