Montenegro Proposes Draft Law to Align VAT Rules with EU Standards Ahead of Accession

Montenegro has proposed a draft law to align its VAT cooperation rules with EU Regulation No. 904/2010. The bill would introduce electronic record submission, cross-border VAT information exchange, joint audits, electronic VAT certificates, and use of the EU’s secure CCN/CSI network. It would apply once Montenegro joins the EU and aims to strengthen VAT fraud prevention and EU-level tax cooperation.

The proposal introduces rules for VAT information exchange, electronic records, audits, and cooperation with EU tax authorities. It would designate the Montenegrin tax authority as the competent body for applying the regulation and exchanging information, and establish a Central Liaison Office responsible for recordkeeping and coordination.

The draft also requires taxpayers and intermediaries to submit records electronically upon request. It allows parallel or joint audits involving Montenegrin tax authorities, EU Member States, and other jurisdictions.

Additional measures include electronic certificates confirming VAT numbers or small taxpayer identification numbers, use of the European Commission’s secure CCN/CSI network for information exchange, and fines between €5,000 and €20,000 for failure to submit requested records.

The law would take effect once Montenegro joins the European Union.

The draft bill aligns Montenegro’s VAT administration with EU cooperation standards before accession. Its main purpose is to improve cross-border VAT control, strengthen anti-fraud cooperation, and prepare the tax authority and taxpayers for EU-level information exchange obligations.