23. 10. 2024.
So far, the value-added tax (VAT) in Montenegro has operated with three rates: 0%, 7%, and 21%. However, it seems that the time for change has come.
A new proposal introduces a middle VAT rate of 15%, which will cover products and services that were previously taxed at 7%, as well as a smaller portion of those previously taxed at 21%.
What does this mean for you?
If you own a business dealing with books, print, monographs, serial publications, or copyrights, get ready for an increase in VAT to 15%. The same applies to tickets for cultural events – cinemas, theaters, concerts, museums, and even sports events. This rate hike will also affect services in non-profit sports facilities, as well as those provided in marinas.
From 01. 01. 2025, even hairdressing services and solar panels will be subject to this middle rate. This might be a good time to consider how this increase will affect your business.
The hospitality sector, which has already felt the burden of the pandemic, will also face changes. Accommodation in hotels, motels, guesthouses, as well as food and beverage services – excluding alcohol, sugary soft drinks, and coffee – will also move to the 15% rate. Until now, these services were taxed at either 7% or 21%, depending on the type.
For many entrepreneurs, this won’t just be a number on paper, but a real challenge to business sustainability. It’s crucial to adapt to the new conditions in a timely manner to ensure that your business remains competitive and stable.
