VAT in Georgia. What every VAT payer in Georgia should know, a successful business in Georgia
Every owner of a successful business in Georgia should be well versed in the issue of registration of a VAT payer. Find out all about VAT in Georgia, the pros and cons that every VAT payer should know about.
For each owner of a Georgian company whose annual turnover exceeds 100 thousand lari, it is necessary to attend to the issue of registration value added tax.
In this article we will talk about what VAT is in Georgia, what advantages and disadvantages of taxpayer registration exist, and what should not be forgotten when having your own business in Georgia.
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What is VAT for Georgian companies
When selling goods, works or services in Georgia, as in many other countries, a value-added tax is added. This is the so-called consumer type of tax, which is paid every time the value is added during the delivery process.
At the time of sale of such products to enterprises, VAT is added to the declared price. Those who are registered as VAT payer in Georgia can return it under certain circumstances.
So, let's list what points every business owner in Georgia should take into account.
- Registration as a VAT payer in Georgia is mandatory upon reaching an annual turnover (not profit) of 100 thousand lari.
- Sales of almost any product or service are subject to VAT.
- VAT paid for goods or services of other companies can be refunded.
- Registration as a VAT payer gives you a chance small business in Georgia enter into contracts with large companies and, thereby, develop.
- The presence of such contracts improves the company's image, attracts investors and suppliers.
- Upon completion of the qualification, voluntarily registered VAT payers in Georgia automatically receive a VAT refund to their company's account.
- When cooperating with companies that are not registered as VAT payers in Georgia, difficulties may arise, since for them the price will be unreasonably high.
- It is unacceptable to miss the deadlines for submitting reports to the tax service and not keep records of VAT paid. Every month, all business owners in Georgia are required to provide invoices, declarations and reports.
- The delay in invoicing leads to violations of the deadlines for filling out VAT refund declarations.
- Registration as a VAT payer in Georgia is possible both in person at the Revenue Service and online on its website.
To fully understand the system of accrual and refund of taxes in Georgia, study the articles in the Madloba directory. We wish you to become the owner of a successful business in Georgia, therefore, we post only valuable and reliable information!
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