§ Legislation 

• Law on Excise ("Official Gazette of the Republic of Montenegro", No. 065/01 dated 31.12.2001, 012/02 dated 15.03.2002, 076/05 dated 16.12.2005, “Official Gazette of Montenegro ", No. 076/08 dated 12.12.2008, 050/09 dated 31.07.2009, 078/10 dated 29.12.2010, 040/11 dated 08.08.2011, 061/11 dated 23.12.2011, 028/12 dated 05.06.2012, 038/13 dated 02.08.2013, 045/14 dated 24.10.2014, 008/15 dated 27.02.2015, 001/17 dated 09.01.2017, 050/17 dated 31.07.2017)
• Rules on application of the Law on Excise ("Official Gazette of the Republic of Montenegro", No. 018/02 dated 23.04.2002, 031/02 dated 29.06.2002, 009/06 dated 14.02.2006, 078/06 dated 22.12.2006, "Official Gazette of Montenegro", No. 018/09 dated 11.03.2009, 023/11 dated 06.05.2011, 012/12 dated 24.02.2012, 035/12 dated 06.07.2012, 066/12 dated 31.12.2012, 004/13 dated 18.01.2013, 053/13 dated 15.11.2013, 059/14 dated 30.12.2014, 014/16 dated 26.02.2016, 022/16 dated 30.03.2016, 051/17 dated 03.08.2017)
• Rules on export of the tobacco products (“Official Gazette of Montenegro ", No. 035/12 dated 06.07.2012, 051/14 dated 05.12.2014)
• Rules on terms and conditions for refund of the mineral oil excises (“Official Gazette of Montenegro ", No. 056/14 dated 24.12.2014, 022/16 dated 30.03.2016, 051/17 dated 03.08.2017)
• Rules on use of excise tags without hologram protection (“Official Gazette of Montenegro ", No. 016/13 dated 29.03.2013)
• Rules on terms and conditions for exclusion of international organizations and diplomatic missions from the payment of excises and value added tax (“Official Gazette of Montenegro ", No.034/10 dated 18.06.2010, 052/13 dated 08.11.2013, 068/15 dated 08.12.2015, 053/17 dated 14.08.2017, 065/17 dated 13.10.2017)
• Decree on the change of manner of calculation and payment of excise for turnover of tobacco products with Republic of Serbia (“Official Gazette of Montenegro ", No.082/05 dated 30.12.2005)
• Rules on deciding average fixed value of tobacco products retail price ("Official Gazette of Montenegro", No. 007/17 dated 31.01.2017)
• Decree on terms and conditions for deciding of average fixed value of tobacco products retail price ("Official Gazette of Montenegro ", No. 008/14 dated 14.02.2014)
• Decree on tagging of tobacco products and alcohol beverages with excise tags ("Official Gazette of the Republic of Montenegro", No. 082/05 dated 30.12.2005, “Official Gazette of Montenegro", No. 022/09 dated 25.03.2009, 089/09 dated 31.12.2009, 053/12 dated 24.10.2012, 011/13 dated 21.02.2013, 019/14 dated 17.04.2014, 058/14 dated 29.12.2014)
• Rules on the procedure of colouring and numeration of mineral oils, which are used as heating oil (“Official Gazette of Montenegro ", No.021/17 dated 31.03.2017)

---

Excise goods

Detailed list of excise goods is given by the Excise Law. The excise goods are:

• Alcohol and alcoholic beverages;
• Tobacco products, including also heat-not-burn tobacco;
• Mineral oils, their derivatives and substitutes and coal;
• Carbonated water;
• Liquids for refilling electronic cigarettes.

Excise tax shall be payable for excise goods produced on the territory of Montenegro and excise goods imported in Montenegro (any entry of excise goods into Montenegro shall be considered importation of excise goods).

Specific terms used in regard with the excise tax are:

• Excise taxpayer is a producer or importer of excise goods, or person to whom the excise tax liability may be transferred in accordance with the law.
• Excise license-holder is a natural or legal person issued with an excise license by the customs authority to produce, process, finish, refine, store, receive and dispatch excise goods under deferred excise tax payment regime, within its business activities carried out in an excise warehouse.
• Excise license is a document issued by the customs authority to a legal or natural person allowing such person to produce, store, receive or dispatch excise goods under the deferred excise tax payment regime, within the business activities carried out in excise warehouse.
• Excise warehouse is one or several mutually connected, fenced off areas or premises that constitute a technological whole, where an excise license-holder produces, stores, receives or dispatches goods under the deferred excise tax payment regime, and which must be visibly marked and physically separated from other areas or premises.
• Deferred excise payment regime is an institute related to production, storage and movement of excise goods, on the basis of which the liability of excise tax payment is postponed.
• Exempt excise goods user is a natural or legal person that under the conditions laid down by the law is issued with the excise license by the customs authority allowing such person to procure excise goods without having to pay excise tax.
• Exempt excise goods user’s facility is an area, plant or equipment for storage of excise goods procured by an exempt excise goods user for the needs of its activities without paying excise tax,
• Importer of excise goods is a customs debtor defined under the customs regulations, or the consignee of foreign excise goods.
• Strong alcoholic beverages are beverages intended for human consumption, possessing particular organoleptic qualities, and having minimum 15% vol. alcohol, produced in accordance with a law governing conditions for production, release into circulation and other matters of relevance for hard alcoholic beverages.

Inception of excise tax liability

Excise tax liability shall be incepted when:

• Excise goods are produced in Montenegro;
• Excise goods are imported into Montenegro.

Excise tax liability may be transferred from the producer or importer to an excise license-holder, or an exempt excise goods user under the conditions and in the manner established by the law.

Deferred excise tax payment regime

Excise tax payment may be deferred if:

• Excise goods are produced or stored in an excise warehouse;
• Excise goods are stored in the facility of an exempt excise goods user;
• Excise goods are transported under the conditions prescribed by the law.

Payment of excise tax on imported excise goods may be deferred, if, immediately upon the entry of such goods into Montenegro, their storage was allowed or if any of the following was initiated: their customs transit procedure, customs warehousing procedure, importation with an aim of exportation under the deferred excise tax payment regime, processing under customs supervision or temporary importation, or if such goods are brought into a duty-free zone.

In case the imported excise goods were released into circulation in accordance with customs regulations, payment of the excise tax may be deferred, if such goods were placed in an excise warehouse or facility of an exempt excise goods user immediately upon being released for consumption.

In case when an excise license expires, payment of the excise tax on excise goods in stock shall be deferred for a period of up to 30 days from the day of expiry of such license, unless such excise goods were released for consumption prior to the expiry of the above deadline or were dispatched to another excise warehouse or an exempt excise goods user facility. In case a license of an exempt excise goods user expires, payment of the excise tax on such goods in stock or stored in an exempt excise goods user’s facility shall be deferred for a period of up to 30 days from the day of expiry of the license.

In case the excise warehouse or exempt excise goods user should cease to operate for reasons of liquidation or bankruptcy, payment of the excise tax shall be deferred until such excise goods are released into free circulation under the liquidation or bankruptcy proceeding, or as long as they are stored in the respective or other excise warehouse or exempt excise goods user’ s facility but no later than until the day when such goods are dispatched to the creditor in accordance with the decision on distribution of assets. In case the excise license or license of an exempt excise goods user expires as a result of a merger, payment of the excise tax shall be deferred until the day the excise goods in stock are released for consumption under the merger procedure or until they are stored in another excise warehouse or exempt excise goods user’s facility, or until they are dispatched, but not longer than 60 days from the day of submission of the application for entering the merger in the register of the competent court.

Transport of excise goods under the deferred excise tax payment regime. Excise goods may be transported under the deferred excise tax payment regime as follows:

• From one excise warehouse to another excise warehouse, from an exempt excise goods user’s facility to an excise warehouse, and in case of importation into an excise warehouse,
• From an excise warehouse to an exempt excise goods user’ s facility and in case of importation to an exempt excise goods user’s facility,
• If exported from an excise warehouse,
• If, immediately upon being brought into Montenegro, excise goods are allowed to be stored temporarily, or any of the following procedures was initiated: customs transit procedure for such goods, procedure for storage in a customs warehouse, importation for the purpose of exporting under the deferred excise tax payment regime, processing under customs supervision or temporary import, or if brought into a free zone.

In case when transporting excise goods imported for the needs of an exempt excise goods user, the importer must submit to the customs authority a statement of the exempt excise goods user declaring that the quantity limit specified in the license issued by a customs authority was not fully used.

Transport of excise goods under the deferred excise tax payment regime shall be allowed only if such goods are accompanied by the excise document, unless otherwise regulated by the law.

Excise document

Administrative excise document is a document that accompanies transport of excise goods and serves to prove:

• The movement of excise goods under the deferred excise tax payment regime;
• The dispatch of excise goods from an excise warehouse or receipt of excise goods into an excise warehouse;
• The dispatch and receipt of excise goods by the exempt excise goods user;
• The export of excise goods, as well as the type and quantity of excise goods under such regime.
• Person transporting the excise goods under the deferred excise tax payment regime shall issue the excise document.

Termination of the deferred excise tax payment regime

The deferred excise tax payment regime shall terminate when:

• The excise tax becomes payable,
• The excise license-holder, exempt excise goods user or importer are exempted from excise tax liability.

Exemption of excise license-holder or exempt excise goods user from payment of excise tax

Excise license-holder shall be exempted from payment of excise tax when:

• Excise goods are stored in the excise warehouse of another excise license-holder who has confirmed the receipt of the consignment on the copy of the excise document;
• Excise goods are stored in the exempt excise goods user’s facility who has confirmed the receipt of the consignment on the copy of the excise document,
• Excise goods are exported and the customs authority confirmed on the document that such goods were physically taken outside the customs area of Montenegro in accordance with the customs regulations.

Excise license-holder shall be exempted from payment of excise tax on excise goods stored in such license-holder’ s own excise warehouse, if:

• The excise goods are used as the basic material for production of other excise goods in the excise warehouse;
• The excise goods are used as samples for analysis in a production testing or for scientific purposes;
• The excise goods are used for the purposes of customs control,
• The excise goods are used for quality control which is performed by authorized persons in a customs warehouse,
• The excise goods are destroyed under the supervision of the customs authority,
• A shortage of excise goods is established, which an excise license-holder proves to be the result of force majeure (excluding theft) or which is inseparably related to the process of production, storage and transport of such goods,
• Alcohol is fully denatured,
• Tobacco products are denatured and used for industrial or horticultural purposes.

Exempt excise goods user shall be exempted from payment of excise tax liability if:

• The excise goods are dispatched and stored in an excise warehouse and if an excise license-holder has confirmed the receipt of the consignment on the copy of the excise document,
• The excise goods are used for the purposes specified by the law.

Exempt excise goods user shall also be exempted from payment of excise tax liability if:

• The excise goods are used as samples for analysis in the testing of production in the production facility or warehouse of such user,
• The excise goods are used for customs control purposes,
• The excise goods are used for quality control purposes carried out by authorized persons in the user’s facility or warehouse,
• The excise goods are destroyed under the supervision of the customs authority,
• The shortage of excise goods is established and proved to be the result of force majeure (excluding theft), and the shortage which is inseparable from the production process, storage and transport of goods for the production of which the excise goods were utilized.

Importer shall be exempted from payment of excise tax:

• If such importer receives, within 15 days from the day of dispatch, a confirmation by the excise license-holder or exempt excise goods user that such license-holder or user has taken over the consignment,
• If such importer proves that the excise goods, which were imported under the deferred customs procedure, were physically taken outside Montenegro.

Excise license-holder and exempt excise goods user shall be exempted from payment of excise tax if:

• Excise goods are released into free circulation and if the excise tax was paid by the buyer;
• Excise goods are sold under a bankruptcy or liquidation proceeding to an excise license-holder or exempt excise goods user and their storage is confirmed in the excise document,
• Excise goods are dispatched from an excise warehouse or exempt excise goods user’s facility to a creditor (based on the distribution of assets) and the excise tax is paid at the same time, or if the creditor being an excise license-holder has confirmed the receipt of the consignment in the excise document.
• Excise license-holder and exempt excise goods user shall be exempted from payment of excise tax if the excise goods are stored in another excise warehouse or exempt excise goods user’s facility and such action was confirmed in the excise document, or if assets are acquired within the period of 60 days from the day the application is submitted for registration and the excise goods are dispatched for such purpose, and the excise tax is paid at the same time.

Occurrence of liability to account for excise tax by producer

The liability to account for excise tax shall occur at the moment when excise goods are released into free circulation. The release into free circulation shall be considered to be:

• Any dispatch of excise goods from an excise warehouse or exempt excise goods user’s facility, except if the excise goods are dispatched: to another excise warehouse or other exempt excise goods user’s facility, to a customs bonded warehouse, to a free zone, under the customs transit procedure or for export,
• Any dispatch from the production facility of an excise taxpayer that is not an excise license-holder.

In case of dispatch of excise goods from the excise warehouse or exempt excise goods user’s facility for which it is not confirmed within 15 days from the day of dispatch of excise goods that the consignment has reached the destination, the liability of accounting for the excise tax shall occur on the 16th day from the day such goods were dispatched.

If the exempt excise goods user utilizes the excise goods for the purposes for which the excise tax exemption is not prescribed, the liability to account for excise tax shall occur on the last day of the month when the excise goods have been released for consumption.

In case of excise goods used in an excise warehouse as raw material for production of other goods, which are used as engine fuel or fuel for heating or the shortage, the liability to account for the excise tax shall occur on the last day of the month in which such excise goods were used or in which the shortage thereof was detected.

Excise tax with deferred payment must be accounted for on the 30th day after the expiry of the license, if the person whose license expired failed to receive the copy of the excise document from the excise goods consignee.

Excise tax with deferred payment must be accounted for on 30th day after expiry of the license, if the person whose license expired failed to receive the copy of the excise document from the excise goods consignee.

The excise tax shall be paid according to the amounts or rates that are applicable on the day when the liability to account for the excise tax occurs.

The liability to account for excise tax for cigarettes shall occur on the day of takeover of control excise stamps.

Occurrence of liability for payment of excise tax on import

The liability for payment of excise tax on import of excise goods shall occur at the moment of payment of import duties, except for the cases when the payment of the excise tax is deferred in accordance with the law.

The excise tax shall be paid according to the amounts or rates applicable on the day when the liability for calculation of the excise tax occurs.

The liability to account for the excise tax on imported cigarettes shall occur on the day of taking over of control excise stamps.

Other cases of occurrence of the liability for payment of excise tax

The liability for payment of excise tax shall also occur in the following cases:

• When the customs authority sells confiscated excise goods, except if such authority sells the goods to an excise license-holder or an exempt excise goods user;
• In a merger, when excise goods are released into free circulation, except if the buyer is an excise license-holder or exempt excise goods user;
• When the merger is completed, if the excise goods are dispatched to the creditor, except if the creditor is an excise license-holder or an exempt excise goods user;
• In the liquidation or bankruptcy proceeding, when excise goods are released into free circulation, or when dispatched to a creditor, except if the creditor is an excise license-holder or exempt excise goods user;
• When the shortage of excise goods is detected, except for the shortage which the excise license-holder proves to be the result of a force majeure or inseparable from the production process, storage or transport of excise goods;
• When legal entity or an entrepreneur who is not the excise taxpayer releases into free circulation tobacco products and alcoholic beverages (except beer and still wine) without the control excise stamp.

The liability for payment of excise tax shall also occur when excise goods are imported, produced, transported and in other manner released into circulation contrary to the provisions of the law.

Excise taxpayers

The excise taxpayer shall be a producer or excise goods importer, unless otherwise prescribed by the law.

The excise taxpayer shall also be a natural person – producer of alcoholic beverages in excess of quantities allowed for personal use, if such alcoholic beverages are released into circulation (sale).

The excise taxpayer shall also be a business organisation, another legal person or an entrepreneur engaged in production of a strong alcoholic beverage for the purpose of its release into circulation.

Excise warehouse

The production or storage of excise goods under the deferred excise tax payment regime may be carried out only in the excise warehouse that is issued with the license by the customs authority, unless otherwise prescribed by the law.

Excise license

Excise license may be issued if the facilities, technical and economic requirements prescribed by the law are met.

Excise license shall be issued in the name of the applicant and cannot be transferred to another person.

Excise license may refer for one or more excise warehouses.

Liabilities of excise license-holder

Excise license-holder must:

• Provide for appropriate safekeeping of excise goods in the excise warehouse; supervise the dispatch and receipt of excise goods; identify losses or shortages;
• Provide for smooth supervision by the customs authority;
• Keep the records of excise goods by type and quantity and records on the movement of excise goods for each excise warehouse and submit to the customs authority monthly excise tax calculations and monthly inventories of goods in stock;
• Inform the customs authority of all changes in the information indicated in the application for the excise license;
• In the case of status alteration, expansion, reduction or termination of the business activity, request from the customs authority a change of the excise license.

Excise tax payment guarantee instruments

To ensure the fulfilment of the liability of payment of excise tax, excise license- holder must submit a guarantee instrument for payment of the excise tax to the customs authority in accordance with the law.

The value of the excise tax payment guarantee instrument must correspond to the amount of the excise tax chargeable for excise goods to which the excise license relates.

Conditions for issuance of excise license

Exempt excise goods user may procure excise goods without paying the excise tax only if issued the relevant license by the customs authority.

Legal person, natural person or entrepreneur may apply for the license if fulfills the following requirements:

• In accordance with the prescribed requirements performs the activity for which such legal entity uses the excise goods for the purposes specified in the law;
• Keeps business books;
• Regularly meets tax and customs liabilities;
• No bankruptcy or liquidation proceeding has been instituted against such entity;
• Prior to the license issuance, submits an excise tax payment guarantee instrument in accordance with the law;
• Meets other requirements determined under the law.
• The entity that meets the requirements may be issued the license if the following requirements are also fulfilled:
• The production facilities, warehouse, or other facilities for storing excise goods are organized and equipped to allow for the safe storage and use of excise goods and proper measuring of stocks of such goods;
• The tracing of book entries of such goods provides a precise insight into the consumption of excise goods and goods in stock for the production of which excise goods are used;
• Conditions for control are provided.

The customs authority shall issue the license for an exempt excise goods user on the basis of a written application for a period of up to 12 months and can be renewed in the manner and under conditions referred to in the law.

License of exempt excise goods user shall expire:

• When the performance of the activity related to the excise goods terminates;
• When the customs authority revokes the excise license;
• As of returning the excise license.

The customs authority shall revoke the license if an exempt excise goods user no longer meets the requirements specified by the license, and particularly:

• If fails to provide an appropriate stock control system;
• If the value of the excise tax payment guarantee instrument does not correspond to the amount of the excise tax liability;
• If the license is issued on the basis of incomplete or incorrect information;
• If fails to eliminate irregularities within the deadline determined by the customs authority;
• When liquidation or bankruptcy proceeding is instituted.

Excise tax refund

The following shall have the right to refund of paid excise tax:

• Excise license-holder that procured excise goods at the price with the excise tax included and used such goods in the excise warehouse for the production of excise goods;
• Importer that is returning imported goods abroad in the unchanged condition, and that paid the excise tax for such goods on their import;
• Exporter exporting excise goods for which the excise tax was paid;
• Person that procured excise goods at the price with the excise tax included or the excise tax for such goods is paid on import, and the excise goods are used for the purposes referred to in the law.