In accordance with the Framework Agreement between the Government of Montenegro and the Commision of the European Communities on the rules for cooperation concerning EC financial assistance in the framework of the implementation of the assistance under the instrument for pre-accession assistance (IPA) „Community financed contracts for services, supplies or works carried out by contractors registered in Montenegro or by external contractors shall not be subject in Montenegro to value added tax, documentary stamp or registration duties or fiscal charges having equivalent effect, whether such charges exist or are to be instituted. EC contractors shall be exempted from VAT for services rendered, goods supplied and/or works executed by them under EC contracts with the right of the contractors to offset or deduct input VAT paid in connection with the services rendered, the goods supplied and/or the works executed against any VAT collected by them for any of their other transactions”. In this regard equipment and services acquired within the Tempus projects are exempt from payment of value added tax (VAT).
Procedure of VAT exemption for Higher Education Institutions purchasing equipment and services under the Tempus projects is as follows:
- Request in written form to Ministry of Education and Sports (National Tempus Office) in order to obtain Opinion on VAT Exemption of above mentioned tax.
- After obtaining the Opinion of the Ministry of Education and Sports, Higher Education Institutions submit this request together with the proforma invoice and the new request addressed to the Ministry of Foreign Affairs and European Integration. The documents are submitted to Mr. Đon Siništaj, Adviser in Department of Consular Affairs.
- Ministry of Foreign Affairs and European Integration issues two documents, which are then submitted to rector of participating University, for signature. These documents are signed both by rector of participating University and representative of Department of Consular Affairs of Ministry of Foreign Affairs and European Integration.
- One copy of the above mentioned documents is submitted to archive of Ministry of Foreign Affairs and European Integration.
- The Opinion obtained by Ministry of Education and Sports, two Opinions obtained by Ministry of Foreign Affairs and European Integration and proforma-invoice of purchased equipment or services are sumitted to freightforwarder. Afterwards, all the collected documents are submitted tothe Customs Administration for further procedure.