Open Fiscal Representative in Montenegro

VAT registration is mandatory (once taxable turnover exceeds EUR 30,000 in 12 months) for local and foreign investors and companies doing business in Montenegro. The main difference in terms of conditions for each category is that foreign ones must appoint a fiscal representative to complete this formality.

Below, our lawyers in Montenegro explain how a fiscal representative works in this country, how to appoint one, and even how to create one.

What is a Montenegrin fiscal representative?

Also known as a fiscal agent, this representative is a person, usually an accountant or another specialist, who can offer various tax-related services. In most cases, the fiscal representative is associated with solutions that deal with VAT registration, payments, and reporting, as this tax applies to all types of entrepreneurs in Montenegro.

It is also possible to open a fiscal representative in Montenegro by registering a company or sole proprietorship if you are an accredited accountant.

Our law firm in Montenegro can offer support to register as a fiscal agent, as well as with VAT and tax registration services. The latter can be accessed if you decide to open a company with our help.

The services offered by fiscal agents in Montenegro

A foreign investor who comes to Montenegro for the first time and must deal with various authorities finds out he/she must use specialized services. This is also the case with VAT registration, which must be completed through an authorized agent when a person or company does not have a Montenegrin address. The fiscal representative will guarantee that the taxpayer respects the regulations. This is how such a service has been extended to more than obtaining a VAT number and completing other procedures.

Nowadays, a Montenegrin fiscal agent can:

• obtain a tax identification code;
• file tax returns;
• assist in EORI registration;
• help in import-export procedures.

With respect to VAT payments, the role of the agent is to ensure that after registration:

• the required returns are filed in due time;
• the payments are also made within the established timeframe;
• the deductions and exemptions available are claimed.

The Montenegrin fiscal representative will also act as a liaison between the payer and the tax authorities.

Feel free to obtain more information on the appointment or setting up of a fiscal representative from our law firm in Montenegro.

VAT requirements for digital services in Montenegro

 One of the cases where fiscal representation can really be of help in Montenegro is when selling online goods or services. From this point of view, Montenegro has adhered to the EU VAT on digital services directives.

Even if appointing a fiscal representative is not mandatory in this case, this is a sought service by Montenegrin e-commerce companies doing business in EU countries. The tax agent can help them navigate VAT-related requirements, such as mandatory registration when reaching an annual turnover of EUR 30,000 per year.

If you need assistance, our Montenegrin lawyers can advise on EU tax legislation.

VAT compliance requirements in Montenegro

Here are the main aspects to consider about VAT in Montenegro, in accordance with the rules imposed by the Ministry for Finance:

• the standard rate is 21%;
• there are also reduced rates of 15% and 7%;
• VAT returns must be filed by the 15^th of the following month for the current one;
• VAT records must be kept for at least 5 years;
• failing to comply with any requirement may result in fines of up to EUR 20,000.

You can rely on our lawyers for various services, including support in immigration to Montenegro. We can help you apply for residency and even citizenship in Montenegro.

Do not hesitate to contact us for more information about fiscal representation in Montenegro.