VATLive > Blog > VAT > Montenegro forced into emergency 2% VAT rise - Avalara

Montenegro forced into emergency 2% VAT rise

  • VAT
  • 30 May 2013 | Richard Asquith

Montenegro forced into emergency 2% VAT rise

The Montenegro government has rushed through an emergency 2% rise in its Value Added Tax rate this Tuesday under pressure from the International Monetary Fund.  The effective date will be 1 July 2013.

The rise will take the VAT rate to 19%, still below the EU average VAT rate of over 21%.

The IMF has raised concerns around Montenegro's uncontrolled sovereign debt levels of 54% of GDP.  The former Serbian region has still not fully recovered following its 2006 independence.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.