New simplified procedures for tax administration

26-June-2020

 The Head of the Revenue Service of the Ministry of Finance of Georgia, Levan Kakava met with representatives of the Georgian Business Association to introduce and discuss new rules of tax administration. 
 

The parties discussed in detail the amendments, which have been prepared through close cooperation between the government and the private sector, and which considerably simplify administration processes saving the business both: time and expenses. The amendments, in particular, stipulate that:

  • of applications filed by taxpayers to write off inventory items, one application on one item per day will be reviewed free of charge, providing the value of such item does not exceed 100 lari;
  • Catering facilities can write off in a simplified manner (by submitting one cost accounting statement per month) the goods damaged/spoiled during the past month, without the need for the tax authorities to arrive at the site and check the goods and collect the fee;
  • Commercial facilities will be exempted from taxes on the food loss accounting for 1% of the income received;

During the meeting with representatives of the member-companies of the Business Association, the Head of the Revenue Service highlighted the series of steps taken by the Government of Georgia to liberalize the tax system administration. The simplified tax system is what aims at improving the business climate and the further development of companies.

 “No fee will be collected for the review of the applications claiming the write-off of damaged/spoiled goods of insignificant value. Besides, as far as it is known, the storage of damaged goods involves certain expenses. More specifically, because of difficult write-off procedures, the catering facilities need to record spoiled goods as sold and pay taxes for them. Based on the amendments prepared through consultations with the businesses, the catering facilities which have an orderly bookkeeping system and have never been fined for avoiding the use of cash register or for carrying the goods without the bill of sale, will be able to write off in a simplified manner (by submitting one cost-accounting statement per month) the goods damaged/spoiled during the past month, without the need for the tax authorities to arrive at the site and check the goods and collect the fee. Besides, commercial facilities will be exempted from taxes on the food loss accounting for 1% of the income received; - Levan Kakava said.

The Head of the Revenue Service answered the questions of representatives of various companies, after which the Head of the Tax Control Methodology Division, Levan Siranashvili delivered a detailed presentation of new rules for writing off goods.

The meeting held at the Georgian Business Association was attended by the First Deputy Head of the Revenue Service, Mamuka Baratashvili, the Head of the Analytical Department, Zaal Tkeshelashvili, the Head of the Tax and Customs Methodology Department, Roman Bugadze, the President of the Georgian Business Association, Soso Pkhakadze, the Executive Director of the Association, Levan Vepkhvadze and representatives of the member companies.

Norms regulating the aforesaid issues, including information on exemption from fees of the applications claiming write-off of goods valued at less than 100 lari (Government of Georgia Resolution N96); on simplified rules for catering facilities to write off goods (Minister of Finance Decree of N994) and on food loss incurred by catering facilities (Head of Revenue Service Decree N16117) are available at:

https://matsne.gov.ge/ka/document/view/2800?publication=90

https://matsne.gov.ge/ka/document/view/1167835?publication=110

https://www.rs.ge/common/get_doc.aspx?doc_id=10948

 

Simplification of damaged/spoiled goods write-off procedures is one of the issues, on which the Government worked closely with the business. This initiative fully reflects business interests and is based on the proposals and suggestions of the business sector.

 

Revenue Service of the Ministry of Finance


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