Montenegro VAT (PDV) Guide for 2026: Rates, Registration & Filing
Montenegro's standard VAT (PDV) is 21%, with reduced 7% and 0% bands. Covers registration, taxable scope, and filing requirements.
Last updated
Key Takeaways
Montenegro applies a standard VAT (PDV) rate of 21% to most goods and services, including SaaS and digital products, with a 15% reduced rate for books, publications, hospitality, and accommodation. As a non-EU country, the EU's EUR 10,000 threshold does not apply — a business registers for VAT once turnover reaches EUR 30,000, within 10 days of crossing the threshold. Financial and insurance services, healthcare, education, and other public-interest supplies are exempt under Montenegro's EU-aligned exemption framework; exports are zero-rated.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Sales Tax Rates
Montenegro applies a standard VAT (PDV) rate of 21% to most goods and services, including SaaS and digital products sold to consumers [2]. Reduced and zero rates apply to specific categories:
Rate | Applies to |
|---|---|
21% (standard) | most goods and services, SaaS, and digital services |
15% (reduced) | books and publications, hospitality and accommodation, cultural and sporting events |
7% (reduced) | bread, milk and dairy, medicines, schoolbooks, public transport |
0% (zero) | exports and international transport |
Electronically supplied services to Montenegrin consumers are taxed at 21%, and non-resident B2C providers must register from the first sale through a tax representative, with B2B sales reverse-charged [2].
Registration & nexus threshold
Montenegro is outside the EU, so the EU One Stop Shop and the EUR 10,000 threshold do not apply. A business registers for VAT once turnover reaches EUR 30,000, and must do so within 10 days of crossing the threshold [1]. Registration steps are in the How to Register section.
Filing frequency & deadlines
VAT is reported monthly, with the return and payment due by the 15th of the following month [1][2].
Exemptions
Exempt supplies include financial and insurance services, healthcare, education, and other public-interest supplies under Montenegro's EU-aligned exemption framework [2]. Exports are zero-rated [2].
Penalties
Late filing carries a minimum fine of EUR 500, with company fines for late filing or payment commonly ranging from EUR 3,000 to EUR 40,000, plus statutory default interest set by the Central Bank of Montenegro [1].
Sources
[1] Government of Montenegro — Value Added Tax (21% standard, 7% reduced)
[2] Government of Montenegro — Revenue and Customs Administration
Verified July 2026 against the Government of Montenegro guidance.
Frequently asked questions
Ready to automate your sales tax?
No credit card required.