If you are not a resident of Montenegro and enjoy shopping while on holiday, you have a great opportunity to apply forTax Freeand get backVAT(PDV in Montenegrin). In this article, we explainhow Tax Free works in Montenegro, who is eligible for a refund, what documents are needed, and where to collect the money.
What is Tax Free?
This is a system for refunding value added tax (VAT, in MontenegrinPDV – Porez na dodatu vrijednost) to foreigntouristsmaking purchases in the country. In Montenegro, the standard VAT rate is21%, and you can get back up to17%of the purchase price.
Where to apply for Tax Free
To get a VAT refund, purchases must be madeonly in stores with the signTax Freeor the “Tax Refund” sign. If the storesupports 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 intheir original packaging,
receipts and the Tax Free form,
passport.
Customs officers will issuea tax refund voucher. This must be donewithin 3 monthsof 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 voucherat 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 rules.
Unfortunately, there is no option to receive a VAT refund at airports in Montenegro (in Tivat or Podgorica) or at the land border.
A practical travel hack for tourists
To get a VAT refund, you do not necessarily have to go straight home. It is enough to takea day trip to neighboring countries— Bosnia, Croatia, or Albania. At the border, you can obtain a customs voucher and combine business with pleasure: sightseeing + VAT refund.