What you need to know about VAT in Georgia in 2023, VAT for non-residents of Georgia, how to issue a VAT refund
Find out all about the changes in the taxation system of Georgia in 2023! Click on the link right now to figure out how VAT is paid, how to issue a VAT refund. We will tell you why it is profitable for freelancers and foreign owners of companies to work in Georgia in 2023!
Business conditions in Georgia are getting easier and better every year. Regular updating of legislation allows not only citizens of the country, but also non-residents of Georgia to retain their companies.
What changes have been made to the taxation system of Georgia in 2022 to resolve the problems that have arisen due to the coronavirus pandemic, we will consider in this article.
Приглашаем для общения про Грузию
Automatic VAT refund
The Government of Georgia has introduced a decree according to which the excess VAT it is returned to the current account of the person who works with the right to offset VAT.
This approach makes life easier for taxpayers, because the tax will be returned automatically, without additional requests and unnecessary bureaucracy.
Bureaucracy is generally unusual for a country like Georgia. That is why small and medium-sized businesses feel comfortable, even in conditions of restrictions on COVID-19.
New requirements for VAT payment in Georgia
New rules on VAT accrual entered into force in Georgia at the beginning of 2022. The amount of VAT has not changed and is 18%, while registration of a taxpayer is mandatory when an income level of more than 100,000 lari is reached.
The reverse value-added tax arises when the President of Georgia uses the services of a non-resident. It is also 18%.
The territorial taxation system continues to operate. That is, if the services are provided outside Georgia, they are not subject to VAT.
Innovations relate to determining the location of the object taxation, аafter all, it directly depends on whether the services will be subject to value-added tax or not.
According to the current legislation:
- services related to real estate are determined by the place where this real estate is located,
- services related to movable property in the field of culture, education, art or sports, or additional transport services are determined by the place where they were actually provided,
- transportation services are determined by the place where transportation begins, for excluding passenger transportation
- services provided for those who work under the management of an organization registered abroad, the place of provision of services is determined outside the country.
Thus, a whole list of services provided falls under the last paragraph, and they are not subject to value-added tax. However, those taxpayers who provide services that are not included in this list are obliged topay VAT. At the same time, they do not have the opportunity to return it, because they are taxpayers in other states.
Changes in taxation in Georgia in 2022 are beneficial to freelancers, foreign owners of companies that fall into the list of current legislation.
Study the laws of Georgia, open your own business in the country that is considered the most accessible for doing business! The Madloba directory directory will be happy to help you with this!
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Очень рад, что правительство Грузии внесло изменения, позволяющие автоматически возвращать избыточный НДС на расчетные счета налогоплательщиков. Это упрощает процесс и освобождает от лишней бюрократии. В Грузии действительно ценят комфорт и удобство для бизнеса, особенно для малых и средних предприятий, что является замечательной новостью.