If you are not a resident of Montenegro and enjoy shopping while on vacation, you have a great opportunity to claim Tax Free and get back VAT (PDV in Montenegrin). In this article, we explain how Tax Free works in Montenegro, who is eligible for a refund, what documents are needed, and where to get the money.
What is Tax Free?
It is a value-added tax refund system (VAT, in Montenegrin PDV – Porez na dodatu vrijednost) for foreign tourists making purchases in the country. In Montenegro, the standard VAT rate is 21%, and you can get back up to 17% of the purchase price.
Where to apply for Tax Free
To get a VAT refund, purchases must be made only in stores with the sign Tax Free or the sign «Tax refund». If the store supports this system, ask the salesperson to fill out the VAT refund form. Only then will your purchase be officially registered for a later refund.
How to get a customs stamp
When leaving Montenegro, present the customs service with:
- purchases in their original packaging,
- receipts and the Tax Free form,
- passport.
Customs officers will issue a tax refund voucher. This must be done within 3 months of the purchase date.
How to get a VAT refund
The next step is getting your money back. On a return visit to Montenegro, present the tax refund voucher at the store where the purchase was made. The money will be refunded directly in the store — in cash or to a card, depending on the store’s policy.
Unfortunately, there is no way to get a VAT refund at Montenegro’s airports (in Tivat or Podgorica) or at the land border.
A practical life hack for tourists
To get a VAT refund, you do not have to go home right away. It is enough to take a day trip to neighboring countries — Bosnia, Croatia, or Albania. At the border, you can оформить a customs voucher and combine business with pleasure: sightseeing + VAT refund.