Individuals or entities can appoint a fiscal representative in Georgia who can participate in tax matters on their behalf. This representative will handle various tax-related matters such as: filing VAT returns, communicating with tax authorities, and ensuring compliance with Georgian tax laws. Our company formation specialists in Georgia will explain more about the tax obligations and help you with fiscal representation.
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How can a fiscal representative help you in Georgia?
A fiscal representative in Georgia can assist businesses or entities that have tax obligations in the country. The main services of a fiscal representative include:
- Tax compliance with all the relevant tax laws and regulations in Georgia. This includes registering for VAT and other applicable taxes, filing tax returns, and making timely tax payments;
- Communication with tax authorities;
- Keeping accurate tax records and documentation (invoices, receipts, etc.);
- VAT refund assistance.
The specific services and roles of a fiscal representative may vary depending on your business’s needs, the type of taxes involved, and the nature of your transactions in Georgia.
VAT registration in Georgia
Foreign companies that wish to register for VAT and have a permanent presence in the country are required to appoint a fiscal representative in Georgia.
A permanent or fixed establishment is defined as a place outside the taxable natural person or company’s main location, but that has the necessary means to provide or receive services and conduct business.
The standard VAT rate in Georgia is 18%. This rate applies to the supply of all goods and services within the country. Some supplies are VAT-exempt, including financial services, goods and services required for oil and gas operations, certain medical and education services, etc.
A fiscal representative in Georgia will help you with VAT registration. This is required if the taxable turnover exceeds 100,000 GEL in any continuous 12-month period. Georgian fixed establishments of foreign taxable persons are liable for VAT registration from the start of taxable operations.
Non-established businesses providing digital services to individuals in Georgia must declare and pay VAT in Georgia.
If you need help with company incorporation in Georgia and other tax matters, our specialists can assist you.
VAT refunds in Georgia
If a foreign business from a European Union (EU) country is registered for VAT in their own country, they can potentially get a refund of the VAT they pay in Georgia under certain conditions. A fiscal representative in Georgia is mandatory in this case.
The process involves applying to the Revenue Service in Georgia, along with various documents like invoices, import declarations, and proof of the authorized representative’s appointment. The Revenue Service of Georgia will review the application and decide within six months. If the refund is approved, it will be provided in GEL.
Our accountants in Georgia can provide additional help if you wish to manage your taxes more efficiently. We can also recommend you a team of local lawyers specialized in corporate legal matters.
Statistics about taxes in Georgia
If you are interested in discovering more insights about the composition of tax revenues in Georgia, here are some statistics from the year 2021:
- The highest share of tax revenues, accounting for 45.6% of the total, came from VAT;
- The second-highest share of tax revenues in 2021 – 27.9% of the total – was derived from personal income tax;
- The total tax revenues in Georgia in 2021 were 13,550 million GEL;
- The total tax revenues represent 22.6% of Georgia’s GDP in the same year.
If you have more questions about fiscal representation or need assistance in opening a company in Georgia, please contact our team.