During the period spanning May 1 to August 9, 2026, the Montenegro Tax Inspection (Poreska inspekcija) conducted an intensive, countrywide enforcement campaign targeting taxpayers across all administrative regions. The operation, which forms part of the Administration’s broader summer-season compliance strategy, resulted in the completion of 2,300+ inspection activities and the imposition of administrative fines totaling over 2.1 million euros. The legal basis for these proceedings derives from the Law on Tax Administration and the General Tax Procedure Law, which empower inspectors to verify the correctness of tax returns, examine the legitimacy of input tax deductions, and pursue corrective measures for identified deviations. The campaign specifically targeted sectors prone to VAT gap erosion, including hospitality, retail, and import-oriented enterprises, leveraging digital data analytics to flag irregularities in turnover reporting and customs declarations. Of the inspected entities, a significant subset was found to have underreported revenue or claimed unjustified input tax credits, leading to the quantified fines. The results underscore the Administration’s commitment to enhancing fiscal transparency, reducing the VAT gap, and aligning domestic enforcement practices with European Union administrative cooperation standards under Council Directive 2011/16/EU. The fine revenue collected is earmarked for the national budget and will support ongoing public infrastructure and social welfare expenditures. The campaign’s outcomes are expected to reinforce taxpayer compliance culture and serve as a deterrent against future fiscal non-compliance during the remainder of the 2026 fiscal year.
Key Takeaways
- Nationwide Inspection Volume and Period: The Tax Inspection executed over 2,300 control activities within a compressed three-month window from May to August 2026, reflecting a strategic shift toward high-frequency, seasonal enforcement rather than case-by-case audits.
- Quantified Financial Sanctions: Identified violations resulted in over 2.1 million euros in administrative fines, with the majority stemming from VAT underreporting and improper input tax credit claims in the hospitality and retail sectors.
- Compliance Deterrence and Future Enforcement Outlook: The magnitude and visibility of the fines are intended to deter widespread non-compliance; the Administration is likely to repeat such intensive campaigns annually, particularly during peak tourist and trade seasons, making proactive compliance essential for businesses operating in Montenegro.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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