Fiscal subject related
General information
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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