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Montenegro Poised to Introduce Centralized E-Invoicing System to Cut VAT Gap

In an effort to reduce its significant value-added tax (VAT) gap, Montenegro’s Minister of Finance has announced plans to implement a mandatory nationwide e-invoicing system. This move aims to streamline the country’s invoicing process and bring much-needed efficiency to businesses operating within the region.

Current Invoicing Model

As it stands, Montenegro currently operates under a post-audit e-invoicing model, where invoices are only verified after being issued. However, the planned centralized e-invoicing system will require all businesses to send electronic invoices through a single platform, ensuring greater transparency and reduced errors.

Key Features of the New System

  • Mandatory Infrastructure: All businesses must use a single platform for sending electronic invoices.
  • Electronic Signatures: Electronic signatures will be mandatory for all e-invoices, ensuring their authenticity and security.
  • Archiving Requirements: Businesses must archive invoices for a minimum period of:
    • 5 years for movable property
    • 20 years for immovable property
    • Archiving abroad is allowed
  • Buyers’ Consent: Buyers will need to provide consent before receiving e-invoices.
  • Receiving Party Obligations: Receiving parties will not be compelled to accept digital invoices.

Compliance Resources

For businesses seeking guidance on navigating these changes, Pagero’s Regulatory Atlas provides comprehensive information on Montenegro’s compliance requirements. Interested parties can book a free consultation to discuss their specific needs and explore solutions that can help streamline their operations.

To stay informed about the latest developments in Montenegro’s e-invoicing landscape, readers are invited to subscribe to Pagero’s Compliance Monitor, which delivers in-depth reports on country-specific requirements.