- Montenegro’s parliament has approved the introduction of a 15% VAT rate, set to take effect on January 1, 2025, impacting specific products and services previously taxed at 7%.
- The new 15% VAT rate will apply to a range of items, including books, hotel and accommodation services, non-alcoholic beverages, food preparation services, copyrights, educational services, marina services, solar panels, and hairdressing services.
- The existing 7% VAT rate will continue to apply to essential goods, such as basic food items, medicines, medical devices, textbooks, non-bottled drinking water, public transportation, animal feed, and menstrual products.
- The VAT changes are intended to align Montenegro’s tax system with EU Directive 2006/112, facilitating the country’s application for EU membership while aiming to reduce the overall tax burden on wages.
- This reform is part of a broader fiscal strategy to enhance Montenegro’s economic framework and support its integration into the European Union.
Source Pagero
Global Upcoming VAT Rate changes – Chronological, click HERE
