Monaco levies a value-added tax (VAT) on the supply of goods and services in the country, including imports. Monaco has a customs union with France, and the same VAT regime applies.

The standard VAT rate is 20%. Reduced rates of VAT apply as follows:

10% to accommodation services provided by hotels and similar providers if they are offered to customers for a period not exceeding 30 nights and the service includes the provision of furnished premises and at least three of the following: breakfast, regular cleaning, household linen, and reception services (effective 1 January 2024);
5.5% to foodstuffs and installation, maintenance, and servicing of charging infrastructure for electric vehicles; and
2.1% to pharmaceuticals.

Exports are zero rated whilst certain other supplies are exempt.

Exempt Supplies Include:

Land under specific conditions;
Financial transactions;
Buildings completed for more than five years;
Insurance;
Education;
Health and welfare; and
Betting and gaming.

Registration Thresholds

Effective 1 January 2017, taxpayers are required to register for VAT if their annual turnover in the previous year exceeds EUR 82,200 (EUR 85,000, effective 1 January 2025) in case of domestic supply of goods and EUR 33,100 (EUR 37,500, effective 1 January 2025) in case of domestic supply of services (other than sales for consumption on the premises and accommodation services). In the case of specified activities taxpayers are exempt from VAT if their annual turnover did not exceed the following in the previous year:

EUR 91,900 (EUR 85,000, effective 1 January 2025) for hotel accommodation and food and beverages in restaurants;
EUR 36,800 (EUR 37,500, effective 1 January 2025) for the supply of services other than hotel accommodation, food and beverages in restaurants, and services supplied by authors of intellectual work and performing artists; and
EUR 47,700 (EUR 50,000, effective 1 January 2025) for services supplied by authors of intellectual works and performing artists.

However, the benefit of the VAT exemption ends if the turnover exceeds the following thresholds in the current year:

EUR 101,000 (EUR 93,500, effective 1 January 2025) for supplies of goods, hotel accommodation, and food and beverages in restaurants;
EUR 39,100 (EUR 41,250, effective 1 January 2025) for the supply of services other than hotel accommodation, food and beverages in restaurants, and services supplied by authors of intellectual work and performing artists; and
EUR 58,600 (EUR 55,000, effective 1 January 2025) for services supplied by authors of intellectual works and performing artists.

In the case of the supply of goods or services by a non-resident, the above-mentioned registration thresholds are not applicable. Non-resident suppliers operating without an establishment in Monaco are required to register for VAT regardless of their turnover.

Returns and Payments

Taxpayers are required to remit VAT return and make corresponding tax payments on a monthly basis between the 15th and the 24th day of the month following the end of the return period. Additionally, the taxpayers are also required to file a declaration by the 25th of the following month, indicating the total amount of the transactions carried out and the details of taxable transactions. When the annual tax payable is less than EUR 4,000, the taxpayers are allowed to file the declarations quarterly.

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