Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 7/26/2019
Liberalization of the market has put pressure on domestic producers to align pricing with costs. The level of prices in Montenegro is higher compared to prices of similar products/services in Western European countries and the United States, thus making imported products price competitive.

With a few exceptions noted below, and in the few remaining publicly owned assets, price supports and subsidies have been removed from the market and, as mentioned above, price competition has intensified.

The state directly controls the prices of utilities, public transit, and petroleum. A significant black market still exists for some products, especially consumer goods, including cigarettes. Such goods can be sold more cheaply because the sellers have generally avoided customs and tax payments. In 2003, Montenegro introduced the Value Added Tax (VAT) with a two-tiered tax rate of 17 and 7 percent. Since January 2018 the standard rate was raised to 21 percent and the lower rate of 7 percent still applies to certain services (primarily computers, technology, books and tourism). The VAT turnover period averages 30 days.

 
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