VAT Standard rate
The standard VAT rate in Georgia in 2024 is 18%.
VAT Reduced rate
0%
The tax legislation provides for cases of applying a zero rate. Examples include:
- Exports
Threshold
The registration threshold for goods in Georgia is 100,000 GEL for 12 calendar months.
Deductible VAT
If goods or services were used to make taxable supplies In Georgia, businesses can deduct VAT paid on costs incurred in their business. Examples include:
- VAT paid on office equipment and furniture;
- VAT paid on the purchase of goods for resale;
- VAT paid on raw materials, materials, and components used in manufacturing.
Registration procedure
The taxpayer must pay VAT within 2 working days, by the date the threshold is exceeded.
It is possible to register as a VAT payer if, during the last 12 calendar months, the total amount of transactions subject to VAT exceeds 75,000 GEL.
When a company needs to register, the owners will be required to complete and submit a VAT registration form to any service center of the tax authority in Georgia or send an electronic application “Registration as a VAT payer” from the user page.
Tax representative
Georgia requires a tax representative for foreign companies that want to register for VAT if they do not have a permanent participant in Georgia.
Keeping records
Records about performed transactions must be kept in order to check the correctness of tax returns and payments. The retention period for the records is 6 years.
VAT payment date
The VAT due must be paid before the 15th day of the month following the period.
Filing VAT returns
VAT returns in Georgia are due by the 15th of the month following the reporting period. The reporting period is a month.