{"id":229,"date":"2023-04-13T09:56:50","date_gmt":"2023-04-13T09:56:50","guid":{"rendered":"https:\/\/companyformationgeorgia.com\/?p=229"},"modified":"2024-03-28T08:46:58","modified_gmt":"2024-03-28T08:46:58","slug":"vat-in-georgia","status":"publish","type":"post","link":"https:\/\/companyformationgeorgia.com\/vat-in-georgia\/","title":{"rendered":"VAT Registration in Georgia"},"content":{"rendered":"\n

Georgia<\/strong> has a standard VAT rate of 18% <\/strong>that applies to certain taxable transactions, depending on the business field and the commercial activity of the Georgian company<\/strong>. The value added tax (VAT) <\/strong>is just one of the applicable taxes for companies in Georgia<\/strong><\/a> and certaintaxpayers in the country must be registered for VAT purposes<\/strong>. The registration for VAT<\/strong> can be voluntarily and it is also compulsory in certain cases. Our specialists<\/strong> company formation in Georgia<\/strong> can help you register your company for VAT purposes<\/strong>.<\/p>\n\n\n\n\n\t\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\t\t\t\t Quick Facts<\/th>\n\t\t\t\n\t\t\t\t <\/th>\n\t\t<\/tr>\n\t<\/thead>\n\t
\n\t\t\t\t We offer VAT registration services <\/td>\n\t\t\t\n\t\t\t\tYes, our specialists offer VAT registration.   <\/td>\n\t\t<\/tr>\n\t\t
\n\t\t\t\t

\n\t\t\t\t\tStandard rate<\/p>\n\t\t\t<\/td>\n\t\t\t

\n\t\t\t\tThe standard VAT in Georgia is 18%. <\/td>\n\t\t<\/tr>\n\t\t
\n\t\t\t\t

\n\t\t\t\t\tLower rates<\/p>\n\t\t\t<\/td>\n\t\t\t

\n\t\t\t\tNot applicable<\/td>\n\t\t<\/tr>\n\t\t
\n\t\t\t\tWho needs VAT registration<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tEntities that obtain an income from the sale of goods and services in Georgia, importers of goods, non-residents who trade goods in Georgia and who aren't registered for VAT in Georgia.  <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tTime frame for registration<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\t Within a day, for the online procedure. <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tVAT for real estate transactions<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\t18%<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tExemptions available<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tVAT in Georgia is not applied to:<\/p>\n\t\t\t\t

\n\t\t\t\t\t– financial services,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– goods and services for oil\/gas operations,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– some medical services,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– some educational services,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– tourist services for foreigners etc. <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tPeriod for filing<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tOn a monthly basis<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tVAT returns support<\/td>\n\t\t\t\n\t\t\t\tYes<\/td>\n\t\t<\/tr>\n\t\t
\n\t\t\t\tVAT refund  <\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tEntities entitled to VAT refunds can receive the refund automatically, in situations where the amount estimated was above the amount due, or they can complete a form with the Revenue Service and request to receive the VAT. <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\t Local tax agent required<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tNot required <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tWho collects the VAT<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tThe Georgian Revenue Service <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tDocuments for VAT registration in Georgia <\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\t– the application form of the Revenue Service,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– the date at which the registration is required,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– the reasons for registration,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– company documents,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– whether the VAT in registration in Georgia is done voluntarily or mandatory (mandatory registration is imposed when a company reaches GEL 100,000 as a taxable turnover in the last 12 months). <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tVAT number format<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tTax Identification Number (TIN) is comprised of 9 digits for legal entities.<\/p>\n\t\t\t\t

\n\t\t\t\t\tNon-residents are assigned with a 9 digit TIN as well, while Georgian companies liable to taxation are issued with a 11 digits TIN. <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tVAT de-registration situations <\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tVAT registration in Georgia can be cancelled when:<\/p>\n\t\t\t\t

\n\t\t\t\t\t– a company enters the liquidation procedure,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– when a certain individual from the company dies,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– in case of non-performance of a business (not collecting sufficient taxable amount to qualify for VAT payments). <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n

 Threshold for mandatory VAT registration <\/td>\n When the taxable turnover reaches GEL 100,000 in a period of 12 months.  <\/td>\n<\/tr>\n
\n

VAT exempt goods  <\/p>\n<\/td>\n

Certain medical products\/services, certain education services, financial services, etc. <\/td>\n<\/tr>\n
\n

VAT obligations for foreign online businesses  <\/p>\n<\/td>\n

\n

 Online businesses (registered in Georgia or developing business activities in Georgia) are VAT payers in accordance to the Georgian tax law.  <\/p>\n<\/td>\n<\/tr>\n

 VAT exemption registration for companies <\/td>\n Companies are exempted from VAT registration when they operate as micro-businesses.  <\/td>\n<\/tr>\n
 Tax legislation <\/td>\n\n

 The Georgian Tax Code<\/p>\n<\/td>\n<\/tr>\n

 VAT obligations for digital services providers <\/td>\n\n

 VAT registration in Georgia for digial services providers is mandatory starting with 2021 (it includes non-resident companies).  <\/p>\n<\/td>\n<\/tr>\n

 Types of digital services charged with VAT <\/td>\n\n

Telecommunication services, broadcasting services, electronically supplied services<\/p>\n<\/td>\n<\/tr>\n

 Establishing the place of supply for digital services providers <\/td>\n\n

VAT registration in Georgia is mandatory if the place of business is determined to be any of the following:<\/p>\n

– the service recipient is located in Georgia;<\/p>\n

– the IP address of the buyer’s device, who purchased the digital service, is registered in Georgia;<\/p>\n

– the operator of the financial transaction through which the digital service was bought is located in Georgia;<\/p>\n

– the telephone code through which the purchase was made is a Georgian number.   <\/p>\n<\/td>\n<\/tr>\n

 Currencies accepted for the payment of VAT <\/td>\n\n

GEL, EUR, USD <\/p>\n<\/td>\n<\/tr>\n

 Ways to register for VAT <\/td>\nVAT registration in Georgia can be completed online.  <\/td>\n<\/tr>\n
 When can a entity deduct VAT?  <\/td>\n\n

 A legal entity can deduct VAT if the company’s activities are regulated under the Article 172 of the Georgia Tax Code. <\/p>\n<\/td>\n<\/tr>\n

 When is VAT calculated to a good\/service?  <\/td>\n\n

At the moment of the supply, in most cases.  <\/p>\n<\/td>\n<\/tr>\n

Other types of business taxes charged in Georgia  <\/td>\n\n

customs duty, excise tax, corporate tax, property tax <\/p>\n<\/td>\n<\/tr>\n

 What type of tax is VAT? <\/td>\n\n

 An indirect tax, charged in various steps of production\/sale of goods\/products.  <\/p>\n<\/td>\n<\/tr>\n

 Ways in which our consultants can assist you  <\/td>\n\n

 Our consultants can prepare the VAT registration file and can complete the procedure on your  behalf.<\/p>\n

Additionally, you can rely on us for professional accounting services and tax compliance and assistance.<\/p>\n

Our team can provide any other services related to taxation in Georgia.  <\/p>\n<\/td>\n<\/tr>\n\t<\/tbody>\n<\/table>\n\n\n\n

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