Montenegro’s Parliament has adopted amendments to the Payment Services Law, while a new VAT framework has been presented as part of efforts to further align national financial regulations with European Union standards. The Payment Services Law amendments were approved on 10 July with 42 votes in favour, with no votes against or abstentions.
The changes establish a legal framework for real-time payment access available 24 hours a day, seven days a week, mandatory verification of payment recipients, and enhanced protection against fraud and incorrect transactions. The reform is expected to influence competition among banks and payment-service providers and provide additional opportunities for fintech solutions. The practical impact will depend on the pace of technical implementation by banks, the Central Bank and merchants.
New VAT framework introduces digital reporting rules
A new VAT law presented on 9 July brings Montenegro’s legislation closer to EU Directive 2006/112, while maintaining the existing general and reduced VAT rates. The legislation introduces provisions covering electronic invoicing, digital reporting, increased cross-border information exchange, and expanded reporting obligations for digital platforms, cryptoassets and specific international tax arrangements.
The new framework is intended to strengthen tax monitoring and improve reporting transparency. Its implementation will require investment in accounting software, tax-administration systems and internal control procedures. Smaller companies operating in sectors including tourism, retail and professional services are expected to face a larger proportional compliance burden during implementation.
Tax inspections identify more than €900,000 in fines
Tax enforcement activity has also increased, with authorities conducting 1,129 inspections between 1 May and 8 July. During that period, irregularities were identified at 177 taxpayers, while 14 facilities were temporarily closed. Authorities imposed total fines of €910,800. The highest concentration of identified irregularities was recorded in Budva.
