Information on VAT exemption
In accordance with the Framework Agreement between the Government of Montenegro and the Commision of the European Communities on the rules for cooperation concerning EC financial assistance in the framework of the implementation of the assistance under the instrument for pre-accession assistance (IPA) „Community financed contracts for services, supplies or works carried out by contractors registered in Montenegro or by external contractors shall not be subject in Montenegro to value added tax, documentary stamp or registration duties or fiscal charges having equivalent effect, whether such charges exist or are to be instituted. EC contractors shall be exempted from VAT for services rendered, goods supplied and/or works executed by them under EC contracts with the right of the contractors to offset or deduct input VAT paid in connection with the services rendered, the goods supplied and/or the works executed against any VAT collected by them for any of their other transactions”. In this regard equipment and services acquired within the Tempus projects are exempt from payment of value added tax (VAT).
VAT Exemption for the beneficiaries of Tempus projects purchasing goods, equipment and services
1) Beneficiaries of the Tempus project submit request to the Directorate General for Consular Affairs under Ministry of Foreign Affairs and European Integration for the registration of Grant agreement, which is basis for obtaining of VAT Exemption during the project implementation. Directorate General for Consular Affairs issues a Certificate on Registration of Grant Agreement. Contact phone no. 020/225 954
2) After the costs have been declared, beneficiaries of the projects prepare request for VAT exemption on the basis of invoices for delivered goods, equipment and/or services. Together with the request beneficiaries of the projects submit a copy of invoices with clearly indicated net and gross amount as well as VAT amount. Both request and its supporting documents are submitted to the Ministry of Education, Directorate for Higher Education.
3) Ministry of Education, Directorate for Higher Education issues Opinion on VAT Exemption to the beneficiary of the project. Afterwards, obtained Opinion on VAT Exemption and invoices are submitted to the Branch Office of the Department of Public Revenues for further procedure.
Customs Exemption for the import of equipment and goods for the beneficiaries of Tempus projects
1) Beneficiaries of the projects prepare request for Customs Tax Exemption, on the basis of invoices for delivered goods, equipment and/or services. Request and supporting documents (invoices) are submitted to the Directorate General for Consular Affairs.
2) Directorate General for Consular Affairs under Ministry of Foreign Affairs and European Integration issues the Certificate on Customs Exemption to the beneficiary of the project.
3) Beneficiary of the project submits Certificate on Customs Exemption to the Customs Administration for further procedure.