Tax regulation of short-term rental platforms (Booking and Airbnb)
According to the draft regulations, international booking services such as Booking.com and Airbnb will be integrated into Montenegro’s tax monitoring system. This will affect individuals and legal entities providing tourist accommodation services.
Main planned changes:
- Automatic data exchange: Digital platforms will be required to provide Montenegro’s tax authorities with information on local landlords’ income and the number of transactions completed.
- Registration control: Renting out housing without entering the property into the official register of the Ministry of Tourism and obtaining the relevant license will no longer be possible to display on foreign platforms.
- VAT administration: Mechanisms are being considered under which platforms will act as tax agents or directly transmit data for the calculation of VAT (PDV) on intermediary services (booking site commissions).
Digitalization and control of the e-commerce sector
At the same time, the state is tightening fiscal policy in the online trade sector. Commercial sales through social networks and local online marketplaces will come under special scrutiny.
Tax authorities plan to track the volume of parcels and courier deliveries within the country in order to identify unregistered commercial activity. The purpose of these measures is to create equal competitive conditions for traditional retail and digital sellers, as well as to curb channels for selling goods without paying the required duties and VAT.
Harmonization with EU fiscal directives
The implementation of these mechanisms is part of Montenegro’s obligations to align its legislation with European requirements, in particular with analogues of the directive DAC7. This regulation requires all digital platforms operating in the European market to automatically disclose their users’ financial data to tax authorities.
Since Montenegro is at an advanced stage of integration into the EU, creating a transparent digital environment in tourism and trade is a mandatory condition for closing the relevant negotiation chapters with Brussels.
News source and photo: Investitor.me