How vat / sales tax works in Montenegro
Montenegro VAT defaults to 21%, with 7% on basic foods, books, medicines, public water, accommodation, and computers.
Traders register past EUR 30,000 of annual turnover, file monthly or quarterly by size, and run electronic invoicing.
Exports zero-rate, financial, health, and education supplies are largely exempt, and EU-accession alignment keeps mechanics directive-shaped.
Tax rates at a glance
- Standard VAT
- 21%
- Reduced VAT
- 7%
- Tourism rate
- 7%
- Exports
- 0%
- Registration line
- EUR 30,000
- Filing rhythm
- Monthly / quarterly
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersHospitality operatorsFreelancersExpatsCross-border traders
Watch out for
- Tourism-season volumes multiply classification errors across stays, dining, and excursions that share the 7% band with different conditions.
- Real-estate transfer taxes run beside VAT on secondary sales, while new-build first transfers carry VAT instead.
- Progressive corporate and income bands interact with VAT registration where DOO structures scale.
- EU-accession alignment moves mechanics yearly, so prior-year guides age fast.
Frequently asked questions
What is the VAT rate in Montenegro?
Montenegro applies 21% standard VAT in 2026, with 7% for essentials, accommodation, and hospitality.
When must a Montenegro business register for VAT?
Past EUR 30,000 of annual turnover, with monthly or quarterly filing by size.
How does VAT treat property sales?
New-build first transfers carry VAT while secondary sales face progressive transfer tax, with annual municipal property tax beside both.