Who Must Register as a VAT Payer
Registration is mandatory in the following cases:
- Exceeding the 100,000 GEL threshold. If the cumulative volume of VAT-taxable transactions over any continuous 12-month period exceeds 100,000 GEL, the taxpayer must apply to the tax authority within 2 business days of the date the threshold is exceeded.
- Production or import of excisable goods (except those exempt from VAT) — before the first supply in Georgia.
- Reorganisation, if the founder is a VAT payer — notification within 10 calendar days of the reorganisation being completed.
- Contribution of goods or services as share capital in another legal entity — notification before the transaction, but no later than 10 days from the date of contribution.
Voluntary Registration
Any individual or legal entity may voluntarily register as a VAT payer. Registration takes effect from the date the application is submitted to the tax authority, provided the application is submitted before the mandatory registration deadline.
Deregistration
Grounds for deregistration:
- Liquidation of the enterprise or organisation.
- Death of the individual.
- Initiation of bankruptcy proceedings.
- Written application by the taxpayer, provided turnover over the last 12 months has not exceeded 100,000 GEL excluding VAT and at least 1 year has passed since the last registration.
Filing and Payment
VAT returns are submitted through the taxpayer portal rs.ge monthly — no later than the 15th day of the month following the reporting period. VAT is paid by the same deadline.
For temporary importation of goods:
- Unregistered taxpayers — pay VAT by the 15th of the following month.
- Registered taxpayers — VAT calculation is treated as completed automatically.
For the import of goods — payment follows the rules established for customs duties. For goods under HS codes 8401–9033 — no later than 45 days after release.
VAT in the Tourism Sector
Under Order No. 107 issued by the Minister of Finance on 28 March 2023, tourism products provided to foreign tourists in Georgia are exempt from VAT with the right to deduct input VAT.
A tourism product under Georgian legislation is a tourism service comprising at least two components: transportation, accommodation, food, tour guide services, or auxiliary tourism services. Services provided to tourists outside Georgia and related support services are classified as services provided outside Georgia and are not subject to VAT.
Tour operators that purchase goods and services to facilitate the arrival and stay of tourists are entitled to a VAT deduction for the goods and services acquired.
Special Cases for Individuals
- Sale of residential property. Selling up to 4 residential apartments with land within 48 months is not treated as economic activity — no VAT applies.
- Rental income. If income from renting residential or commercial property exceeds 100,000 GEL over 12 months — registration is mandatory within 2 business days.
- Sale of a share in a company. Not subject to VAT — this is a financial transaction exempt without the right to deduct.
- Interest income. Not subject to VAT — exempt financial service.