Montenegro pushes through comprehensive tax law reforms including new VAT bill

Montenegro’s Parliament is set to approve a sweeping set of tax reforms aimed at aligning the country’s fiscal framework with European Union standards. Finance Minister Novica Vuković presented a new Value‑Added Tax (VAT) law that modernises reporting, introduces electronic invoicing and digital disclosures, and strengthens cross‑border information exchange with EU tax authorities. The proposal emphasises greater legal certainty for taxpayers and a streamlined administrative process for the Tax Administration.

In the same legislative session, seven tax statutes are scheduled for debate and likely adoption by the end of July. The package includes amendments on excise duties, temporary vehicle import exemptions, mechanisms for resolving tax disputes within the EU, the corporate profit tax, and broader tax‑administration reforms. Authorities aim to curb tax evasion, improve fiscal stability and enhance competitiveness of Montenegrin businesses on the EU market. Opposition voices warned of potential price impacts, while supporters said the changes will not raise overall tax rates for consumers.