# Montenegro VAT (PDV) Guide for 2026: Rates, Registration & Filing

Canonical: https://trykintsugi.com/sales-tax-guides/europe/montenegro
Published: July 19, 2026

Montenegro's standard VAT (PDV) is 21%, with reduced 7% and 0% bands. Covers registration, taxable scope, and filing requirements.

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## 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

## 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)](https://www.gov.me/clanak/porez-na-dodatu-vrijednost)

- [2] [Government of Montenegro — Revenue and Customs Administration](https://www.gov.me/en/taxadministration)

Verified July 2026 against the Government of Montenegro guidance.

#### Frequently asked questions

### What is the VAT rate in Montenegro in 2026?

Montenegro's standard VAT rate is 21%. Reduced rates of 15% and 7% apply to items such as books, accommodation, dairy, medicines, and public transport.

### Do foreign digital businesses need to register for VAT in Montenegro?

Yes. Non-resident providers of electronically supplied services to consumers must register from the first sale through a tax representative.

### Is SaaS taxable in Montenegro?

Yes. SaaS and other electronically supplied services are taxed at the 21% standard rate, with B2B sales reverse-charged.

### What is the VAT registration threshold in Montenegro?

EUR 30,000 over the last 12 months for established businesses. Foreign digital providers have no threshold, and registered businesses cannot deregister for at least three years.

### How often are Montenegro VAT returns filed?

Monthly, with the return and payment due by the 15th of the following month.

### What are the penalties for late VAT in Montenegro?

Late filing carries a minimum fine of EUR 500, with company fines commonly from EUR 3,000 to EUR 40,000, plus default interest set by the Central Bank of Montenegro.