Starting from January 1, 2025, Montenegro will implement a new tax regime for all postal shipments coming from abroad, following changes in the VAT Law. The Ministry of Finance has confirmed that customs officers will assess the value of all postal shipments and calculate VAT and customs duties, which will be collected by postal workers at the recipient’s home address upon delivery.
Previously, citizens were able to receive goods from abroad worth up to 75 euros without paying VAT or customs duties. However, under the new rules, all shipments will be taxed. The VAT rate will depend on the type of goods ordered, with rates ranging from 7% (for newspapers and textbooks), 15% (for books and publications), to 21% (for most other products).
The introduction of VAT on postal shipments is part of the government’s efforts to create a fairer tax system and reduce tax evasion, according to the fiscal strategy. This change aims to address budgetary gaps created by pension contribution reductions and to align Montenegro with broader European tax practices.
The new VAT regulations will apply to all shipments arriving in Montenegro after January 1, 2025, regardless of when they were ordered. The assessment and payment of VAT will be based on the invoice accompanying the shipment. If customs officers have doubts about the declared value, they have the authority to reassess the value according to the Customs Law.
For example, a shipment valued at exactly 75 euros, if taxed at the 21% rate, will incur a VAT of 15.75 euros. For a shipment valued at 10 euros, the VAT will be 2.1 euros.
Citizens will not need to visit customs offices to pay taxes or duties. Postal operators will handle the payment collection upon delivery. This system is expected to simplify the process, as postal services can use IT applications to expedite the customs procedures.
The Ministry also clarified that shipments arriving after December 31, 2024, will be subject to VAT based on the date they enter Montenegro, not when they were ordered. This change reflects a broader trend within the European Union, where all such imports have been subject to VAT since 2021.
As part of this new initiative, the Ministry of Finance and the Customs Administration are preparing by-laws to detail the criteria for exemptions from VAT and to list the products that qualify for such exemptions. This move is expected to streamline the import process while boosting state revenue and ensuring greater tax compliance.
In conclusion, while this new VAT policy might impact online shopping habits, the government hopes it will foster a more balanced tax system and contribute to national economic growth.
