Montenegro Enacts Major Tax Law Reform Package in Alignment with EU Standards

Montenegro published several new and amended tax laws in Official Gazette No. 104/26 on July 17, 2026, with the new Value Added Tax Law representing one of the most significant measures.

The VAT Law further aligns Montenegro’s system with EU legislation, particularly the rules governing intra-Community transactions. It will enter into force eight days after publication but will apply only from the date Montenegro joins the European Union.

Alongside the VAT Law, Montenegro also adopted legislation implementing EU Regulation 904/2010 on administrative cooperation and the fight against VAT fraud. This law regulates information reporting, collection, storage and exchange, competent authorities, and penalties. It will also apply from the date of EU accession.

Other published measures include amendments to the Tax Administration Law, introducing stronger information-exchange and reporting rules and providing a legal basis for a Central Liaison Office, as well as amendments to the Corporate Income Tax Law, clarifying withholding tax on loans and taxation of non-residents. The corporate income tax amendments will apply from January 1, 2027.

A separate law was also adopted on tax exemptions for certain means of transport temporarily imported from an EU Member State into Montenegro. These rules will likewise apply once Montenegro becomes an EU member.

The package shows that Montenegro is continuing to prepare its tax framework for EU membership, with VAT harmonization and cross-border tax cooperation at the centre of the reform.