All about VAT in Georgia, which goods are not subject to VAT in Georgia, how to refund VAT in Georgia
It is important for every business owner in Georgia to understand what VAT is. In this article, we will tell you in detail which goods and services are not subject to VAT in Georgia, and when the overpaid VAT is returned. Right now, follow the link to find out in detail how an entrepreneur does not overpay VAT in Georgia!
Find out all about VAT in Georgia⬇️
Georgia's loyal taxation system attracts investors from all over the world. One of the main advantages was VAT reduction up to 18%, reduction of the refund period for overpaid VAT and its automatic return to the entrepreneur.
In this article, we will analyze what is included in the concept of value added tax in Georgia, which goods and services are not subject to VAT, and how the procedure for refunding overpaid tax occurs.
What is Value Added Tax in Georgia
When selling goods or services, business owners set a price higher than the cost price. An 18% tax is charged on this difference in Georgia.
This type of tax has been created to exempt exports from double taxation, distribution of taxes among buyers and suppliers. The introduction of VAT has reduced the percentage of evading taxpayers.
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What goods and services are not subject to VAT in Georgia
Excellent result on the load on taxpayers the government of the country has achieved this thanks to a competent tax policy. A significant point is a wide range of goods and services that are exempt from value added tax.
Such goods and services include:
- printing and printing.
- pharmaceuticals and veterinary medicine.
- sale of a land plot.
- production of cars.
- stocks and bonds.
- fuel.
- electricity and gas.
- sale of goods on the territory of the FEZ.
- state property.
- transit and servicing of exported goods.
- international transportation of passengers.
- tourism.
This list is not limited only to these types of goods and services. The most popular of them are listed here.
If errors are detected in the calculation of VAT, the entrepreneur has the right to point out inaccuracies and send the correct tax return for the required period. The Tax Service of Georgia solves such issues without problems and returns overpaid taxes.
How to refund overpaid VAT
All organizations registered as a VAT taxpayer in Georgia submit declarations to tax service. Reporting is submitted monthly. In the process of filling in, the VAT paid at the time of purchase and received when selling your own goods or services is indicated.
If an organization has paid more VAT than it has received, this amount is refunded to it. Since 2021, this procedure is automatic, so the business owner does not need to fill out additional applications.
If an organization has received more VAT than it has paid, then it is obliged to pay this tax.
Every business owner in Georgia can count on a refund of overpaid VAT, regardless of whether he is a resident of the country or not.
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Полагаю поэтому в Грузии и с уровнем коррупции дела обстоят гораздо лучше.