Registration as a VAT Payer

Value Added Tax (hereinafter - VAT) is a tax on the consumption of goods/services, which is directly proportional to the price of these goods/services.

In the cases established by the Tax Code of Georgia, the obligation to pay VAT arises at all stages of delivery of goods/services, including retail delivery. In some cases, the amount of VAT payable may be reduced by the amount of VAT directly attributable to the cost of the various components of the cost of delivering the goods/services.

A person taxable with VAT (hereinafter referred to as a Taxable Person) is any person who independently carries out any kind of economic activity in any place, regardless of the purpose and result of this activity. It should be noted that some activities provided by the Tax Code are not taxed with VAT, while during some activities the taxes are reversed, VAT credited, adjusted or refunded.

Registration as a VAT payer can be both mandatory and voluntary. The VAT rate is 18 percent. A taxable person registered as a VAT payer is obliged to submit a VAT Declaration to the tax authority no later than the 15th day of the month following the reporting period and pay the tax within the same period..

In case of delivery of goods or services to another taxable person by a taxpayer registered as a VAT payer, a tax invoice will be issued. In cases specified by the Minister of Finance of Georgia, it is possible to issue a simplified tax invoice.

A taxable person registered as a VAT payer is obliged to submit a VAT Declaration to the tax authority no later than the 15th day of the month following the reporting period and pay the tax within the same period..

Our company easily secures your registration as a VAT payer and helps you in tax relations in Georgia.