All about VAT in Georgia, VAT for foreign entrepreneurs in Georgia, why register as a VAT payer in Georgia
Owners of their own business in Georgia need to understand the issues of VAT accrual and payment. Learn all about VAT in Georgia from our article. We will tell you who must register as a VAT payer in Georgia, and what taxes can be refunded. Follow the link right now!
All about VAT in Georgia⬇️
Every entrepreneur has encountered the concept of VAT in his work. What is it, what features exist, and how to refund VAT in Georgia, we will discuss further.
This information will be useful not only for novice entrepreneurs, but also for owners of existing business in Georgia.
What is VAT and its features in Georgia
Value added tax is charged in excess of the cost. It is paid by suppliers or those who import goods. Do not forget that suppliers are required to register as VAT payers.
In Georgia, it is 18%, and all companies and persons listed below must pay it:
- having the status of a registered VAT payer,
- having an annual turnover of more than one hundred thousand lari,
- entrepreneurs who imported goods not for permanent sale,
- unregistered as VAT payer foreign citizens,
- those who pay debts in this way,
- those who transfer property on credit.
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Registration as a taxpayer
You can register voluntarily for any company. But in the case when the annual turnover is more than one hundred thousand GEL, then it must be done.
In the first half of the month, a report is sent in the form of a declaration, which displays those taxes, which were received by the company in the process of sale, and those taxes that were paid in the process of purchasing goods or services of other companies.
When more is received than paid, the company pays VAT, when vice versa, you can use this difference to pay other taxes.
Tourism business owners in Georgia are exempt from VAT. And the government of the country has approved laws allowing to receive surpluses from the value added tax paid without submitting applications. Everything happens automatically.
VAT for non-residents of Georgia
Foreign entrepreneurs, along with the rest, in Georgia, they must pay VAT according to the rules of import tax. However, they are exempt from it if they have the status of a virtual or free industrial zone.
Thanks to this approach for calculating VAT in Georgia, foreign entrepreneurs are happy to open a business here.
In case of any errors in the calculation of value added tax, the Georgian civil services always meet halfway and recalculate. It is necessary to submit a declaration indicating the correct amounts for this period.
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