§  Legislation

• Law on Financing Local Self-Government ("Official Gazette of the Republic of Montenegro", No. 042/03 dated 16.07.2003, 044/03 dated 28.07.2003, "Official Gazette of Montenegro, No. 005/08 dated 23.01.2008, 051/08 dated 22.08.2008, 074/10 dated 17.12.2010, 001/15 dated 05.01.2015, 078/15 dated 31.12.2015, 003/16 dated 15.01.2016, 030/17 dated 09.05.2017, 092/17 dated 30.12.2017)
• Decisions of the municipalities

The possibility for introduction of consumption tax is regulated under the Law on financing local self-government.

Consumption tax is paid on the turnover of alcoholic and nonalcoholic beverages in hospitality industry facilities, with the exemption of turnover of coffee and tea.

Consumption taxpayer is a legal or physical person providing hospitality industry services.

The base for payment of consumption tax is the sale price of alcoholic and nonalcoholic beverages in hospitality industry facilities, which does not include VAT and consumption tax.

Consumption tax rate may amount to 3%, except for the Capital and Historical Royal Capital for which the rate may amount to 5%.

The municipality with its decision determines the amount of the consumption tax rate.