After Temu, another Chinese online shopping app has become available in Montenegro.
This time, it is Shein, a global leader in fast and affordable fashion. The popular platform has recently enabled delivery to Montenegro through its mobile app.
Specializing in affordable and trendy clothing, Shein primarily focuses on women’s fashion but also offers men’s clothing, children’s collections, accessories, cosmetics, footwear, and more.
Since January 1st, all purchases made through Shein, as well as other online platforms, are subject to VAT in Montenegro, regardless of the shipment value.
In September, the Parliament adopted amendments to the VAT Law, which include imposing full VAT on all foreign shipments and purchases. This replaced the previous exemption for shipments up to 75 euros.
In most countries in the region, there is a threshold for duty-free shipments, with the highest being in Bosnia and Herzegovina at 300 BAM (155 euros). In the EU, all shipments have been taxed since 2021, and this obligation will apply to Montenegro once it joins the EU.
According to the Strategy for the Development of Postal Services, the number of such shipments last year amounted to 800,000, with 270,000 citizens using this form of shopping.
For a shipment valued at 75 euros, if the goods are taxed at a rate of 21%, the VAT would be 15.75 euros. For a shipment valued at 10 euros, the tax would be 2.1 euros.
Customs officers will calculate VAT based on the invoice accompanying the shipment, as well as using catalogs and other methods of expertise allowed by the Customs Code.
“The determination of the customs value of goods (shipments) is done by the customs officer based on the invoice (or other commercial documents) accompanying the goods. If the customs authority doubts the value stated in the invoice, it has the right to determine the customs value according to the provisions of the Customs Law and relevant sub-legal regulations,” stated the Ministry of Finance in response to “Vijesti” when asked how the customs value would be determined.
They also mentioned that customers of postal shipments will not need to visit customs offices to pay taxes and duties.
