Dear Madam/Sir,

We would like to inform you that Montenegrin Ministry of Finance has announced on their web site that, as a part of fiscal strategy measures, the general VAT rate will be increased from 19% to 21% starting from 1 January 2018, noting that the reduced VAT rate will remain unchanged.

In the announcement it is also stated that the planned fiscal strategy measures include increases in excise duties on cigarettes, alcohol, coal, and sweetened carbonated water.

The link to the Ministry of Finance website where this announcement was published is as follows:
http://www.mif.gov.me/vijesti/173156/Ministar-Radunovic-Mjerama-fiskalne-strategije-do-smanjenja-javnog-duga-budzetskog-suficita-i-pravednije-raspodjele-socijalnih-f.html.

Please feel free to contact us for any questions you might have.

KPMG Tax & Legal Department 

KPMG d.o.o. Beograd
Kraljice Natalije 11
11000 Belgrade
Serbia

Office: +381-11-20-50-500
Fax: +381-11-20-50-550

tax@kpmg.rs