Invoicing and Tax regulation in Montenegro
Invoicing Regulation in Montenegro
In Montenegro, invoicing regulations are mandatory and governed by the Law of Accounting and Audit. This law stipulates that all businesses must keep records of their financial transactions and ensure that invoices contain necessary details including invoice number, date of issue, details of supplier and customer, description of goods or services, and the total amount to be paid.
Real-time Reporting / Fiscalization in Montenegro
Real-time reporting and fiscalization are compulsory in Montenegro. Businesses are required to instantly report their transactions to the Tax Administration through the electronic system. This is to ensure transparency and comply with the Law on Fiscalization in Cash Transactions, which aims to prevent unreported transactions.
E-Invoicing in Montenegro
Although e-invoicing is not mandatory in Montenegro, it is increasingly being adopted by businesses. E-invoicing helps in streamlining operations, reducing paper use, and promoting digital transformation. However, businesses need to comply with the norms under the Law of Electronic Document, Electronic Identification and Trusted Services in Electronic Business.
VAT/GST/Tax Compliance in Montenegro
Complying with VAT/GST/Tax regulations is mandatory in Montenegro. The standard VAT rate is 21%, however, there's also a reduced rate of 7% applicable for certain goods and services. Businesses must register for VAT if their annual turnover exceeds €18,000. It's crucial to keep accurate records and file periodic VAT returns to ensure tax compliance. There are stiff penalties for tax evasion, including steep fines and imprisonment.