Value Added Tax (Porez na Dodatu Vrijednost - PDV) in Montenegro
VAT in Montenegro is regulated under the Law on Value Added Tax and the electronic Fiscalization system:
- Standard PDV Rate: Flat 21.0% on taxable supplies of goods, commercial services, and imports.
- Reduced PDV Rate (7.0%): Applies to basic foodstuffs (bread, milk, eggs, sugar), pharmaceuticals, medical orthotics, hotel accommodation, books, and public utilities.
- Mandatory Registration Threshold: Any business or entrepreneur whose taxable turnover exceeds €30,000.00 in any continuous 12-month period must register for PDV within 15 days.
- Electronic Fiscalization (Fiskalizacija): Real-time electronic certification of fiscal invoices with QR codes communicated directly to the tax administration server.
- Zero-Rated (0%) Exports: Export of goods and international B2B digital services provided to foreign entities outside Montenegro.
Statutory Regulatory Framework: Compliant with the Law on Personal Income Tax (Evropa Sad), Law on Corporate Profit Tax, Labor Law of Montenegro, and regulatory decrees issued by the Revenue and Customs Administration (UPC) and REGAGEN.