This tool helps you calculate the Value Added Tax (VAT) for goods and services in Montenegro. The default VAT rate is set to 21%, but you can adjust it if needed.
Many supplies shifted to a new, 15% reduced VAT rate from 1 Jan 2025. The Balkan country of Montenegro has gazetted changes to its reduced VAT rate regime. It has introduced a new 15% VAT rate in addition to the existing 7% rate. There is no change to the 21% standard rate.
Separately, the government announced other VAT changes to join the EU.
Supplies moved from 7% to 15%:
The 7% rate will continue to apply to basics:
Montenegro VAT regime: Montenegro operates a value-added tax (VAT) regime based on the standard European VAT model. The standard VAT rate in Montenegro is 21%, applied to most goods and services. Businesses with an annual turnover exceeding €18,000 are required to register for VAT.
VATCalc’s VAT Filer is able to accurately audit your local transactions as well as complete local VAT returns.
Once registered, businesses must charge VAT on their sales and submit VAT returns, typically on a quarterly basis. The VAT collected is remitted to the tax authorities, but businesses can also reclaim VAT paid on purchases related to their business activities.
Montenegro’s VAT system operates on the principle of “destination-based” taxation, meaning that VAT is levied where goods and services are consumed, not where they are produced. For cross-border transactions within the European Economic Area, the reverse charge mechanism may apply, shifting the VAT reporting responsibility from the seller to the buyer.
Overall, Montenegro’s VAT regime is designed to be aligned with EU VAT practices, offering clarity and consistency for businesses operating in or trading with the country.