VAT IN MONTENEGRO

Value added tax in Montenegro is prescribed by the Law on Value Added Tax. Two positive tax rates of value added tax are applied, namely the standard rate of 21% and the reduced rate of 7%, as well as the zero rate (0%).

The following are taxed at a reduced rate of 7%:

- basic products for human consumption (milk, bread, fat, oil and sugar);

- medicines, including medicines for veterinary use, except for medicines issued at the expense of the Republic Health Insurance Fund;

- orthotic and prosthetic devices, as well as medical devices that are surgically implanted in the body

- textbooks and teaching aids;

- books, monographic and serial publications;

- accommodation services in hotels, motels, aparthotels, tourist settlements, pensions, camps and villas;

- drinking water, except bottled water;

- daily and periodical press, except for press that in whole or in large part includes advertising content;

- public transportation services for passengers and their personal luggage;

- public hygiene services;

- funeral services and products related to those services;

- copyright and services in the field of education, literature and art;

- copyrights in the field of science and art objects, collections and antiquities;

- services charged through tickets for cinema and theater performances, concerts, museums, fairs, amusement parks, exhibitions, zoos and similar cultural and sports events, except for those for which VAT exemption is prescribed;

- services for the use of sports facilities for non-profit purposes;

- fodder, fertilizers, plant protection products, reproduction seeds, planting material and breeding stock.

The zero rate is applied for: export transactions and deliveries of medicines and medical devices that are financed from the funds of the Republic Health Insurance Fund.