Information update date: 11 March 2015

Value Added Tax

A person registered or obliged to be registered as a VAT payer.

 

Compulsory registration binding upon:

  • • A person who carries out an economic activity and whose gross amount of operations to be taxed by VAT during any continuous 12 calendar month exceeds 100 000 GEL (except the below-mentioned case), is obliged to register as a VAT payer and he is considered as a VAT payer from the moment of execution of a taxable transaction (including this transaction), according to which the total amount of the taxable transaction exceeds 100 000 GEL.
  • • A person supplying the goods only in the territory of Special Trade Zone (except a legal entity hiring the trading unit in Special Trade Zone which realizes the goods through a stationary trading unit, and independently performs tax reporting and tax liability) in the case provided shall not be imposed an obligation for mandatory VAT registration.
In addition, the mandatory registration requirement is not included in the determination of:
A. Without the right to exempt taxable transactions other than offsets;
B. With the right to exempt taxable transactions other than offsets;
C. For a person with the status of fixed fee payer – income received from activity to be taxed at fixed fee.
• A person producing excisable goods in Georgia is obliged to refer to tax authority for registration as a VAT payer prior to delivery of the excisable goods.
• A person importing excisable goods in Georgia, except for the case when the import of excise goods in Georgia is exempted from VAT payment, is obliged to refer to tax authority for registration as a VAT payer prior to delivery of the excisable goods.
• If amount of operation to be taxed at VAT as a result of expected single operation within the economic activity or in a single day within economic activity exceeds 100 00 GEL, a person is obliged to register for VAT and he is considered as a VAT payer from the moment of that single operation or taxable transaction performed in a single day (including this transaction), according to which the taxable transaction amount exceeds 100 000 GEL.
Vat rates:
Vat rate amounts to 18% of taxable turnover
Deadline for submission of the declaration:
VAT registered person is obliged to submit a VAT return for each reporting period no later than the 15th day of the following month of this period and to pay VAT at the same time.
The last date of payment of the tax:
VAT registered person is obliged to pay VAT for each reporting period no later than the 15th day of the following month of this period.
Person carrying out the import or temporary import of goods in Georgia is considered as a VAT payer only for this import or temporary import without the obligation of registration.
Non-resident (other than a natural person who is a citizen of Georgia), which provides services in Georgia without registration of VAT payer and permanent establishment, is considered as a VAT payer only for this service is subject to the reverse charge.

VAT rates:
The VAT rate consists of 18% of amount of the taxable transaction with the rule of reverse charge.
Deadline for presentation:
For each reporting period no later than the next 15th day of this period.
The last date of payment of the tax:
At the time of reverse charge, an agent is obliged to pay the amount of VAT charged no later than the 15th day of the following month of accounting period.

Person carrying out the import or temporary import of goods in Georgia is considered as a VAT payer only for this import or temporary import without the obligation of registration.

VAT rates:
The VAT rate is 18% of the amount of import of goods;
At the time of temporary importation of goods, 0,54% of amount of temporary importation provided by the Article 164 of the tax code of Georgia on every full or incomplete calendar month of existing of this goods in the territory of customs of Georgia, but no more than 18% of the amount of temporary importation at the time of temporary import of goods.
The last date of payment of taxes:
VAT amount charged at the time of temporary importation of goods shall be paid no later than the 15th day of the following month of every month, and the last payment shall be made on the end date of the temporary import procedure of goods. The declarant shall have the right to pay the entire amount to be paid at the same time. A person, who is considered as a VAT payer only on import of goods, shall pay a tax at the time of import of such goods.