The Ministry of Finance has adopted the Rulebook on the Procedure for Exemption from Value Added Tax (VAT) Payment for Investors and the Supply of Certain Products and Services.
The right to exemption from VAT payment applies to the supply of products or services for:
- Construction and equipping of hospitality facilities with a category of five or more stars;
- Energy facilities for electricity production with an installed capacity greater than 10 MW;
- Production capacities for food products classified under Sector C, Group 10 of the Law on Activity Classification (“Official Gazette of Montenegro,” Nos. 18/11 and 152/22),
provided the investment value exceeds €500,000.
This exemption also applies to products and services delivered under an international credit or loan agreement concluded between Montenegro and an international financial organization, another state, or a third party where Montenegro acts as a guarantor, if the agreement stipulates that tax costs will not be paid from the obtained funds.
The exemption further applies to the import of products and the supply of products or services domestically when specified in an international agreement or donation agreement, under the conditions, methods, and procedures prescribed by this Rulebook.
On the effective date of this Rulebook, the previous Rulebook on the Procedure for Exemption from VAT Payment for Investors and the Supply of Certain Products and Services (“Official Gazette of Montenegro,” Nos. 17/15, 68/15, and 80/22) will cease to be valid.
This Rulebook was published in the “Official Gazette of Montenegro,” No. 44/2024, on May 13, 2024, and comes into effect eight days after publication.
