The Montenegrin Minister of Finance issued a Rulebook on the Procedures Governing VAT Exemptions for Investors and Supply of Certain Products and Services (the "Rulebook"). The Rulebook defines in more detail the process of VAT exemption introduced by recent amendments to the VAT Law of Montenegro.
The VAT exemption related to the construction of facilities (luxury hotels, energy facilities and capacities for food production) can be used by investors by filing a request for such exemption along with the prescribed accompanying documents. The Tax Administration will then issue a resolution and confirm the eligibility for VAT exemption. In addition, the Tax Administration will issue to the investor control stamps which are then provided by the investor to its suppliers who must attach the stamps to invoices issued for VAT exempt deliveries. Suppliers must then provide the investor with a copy of the invoice.
The Rulebook also defines the VAT exemption procedure for supplies made on the basis of loan agreements where the State of Montenegro is debtor or guarantor more precisely. The VAT exemption can be exercised by an investor on the basis of the resolution issued by the Tax Administration provided that the investor provides a copy of the tax resolution to its supplier and the supplier's invoice for VAT exempted deliveries refers to the issued resolution.
The Rulebook is applicable from 17 April 2015.