VAT in Georgia: Registration, Rates & Filing Guide 2025

Value Added Tax (VAT) is one of the main taxes in Georgia. Understanding when to register, how to charge VAT, and when to file returns is essential for any business. This guide covers everything you need to know about Georgian VAT in 2025.

VAT Basics in Georgia

Georgia's VAT system follows standard European principles. VAT is charged on the supply of goods and services within Georgia and on imports.

Parameter	Value
Standard VAT Rate	18%
Registration Threshold	100,000 GEL annual turnover
Filing Frequency	Monthly
Filing Deadline	15th of following month

When Must You Register for VAT?

Mandatory Registration

VAT registration is mandatory when your taxable turnover exceeds 100,000 GEL in any 12-month period. You must register within 2 days of exceeding the threshold.

Voluntary Registration

Businesses below the threshold can register voluntarily. This makes sense if:

• Your customers are VAT-registered businesses who can reclaim input VAT
• You have significant VAT on purchases that you want to reclaim
• You export goods (exports are zero-rated, allowing VAT refunds)
• Your clients require you to be VAT-registered

Exemptions

Some activities are VAT-exempt regardless of turnover:

• Financial and insurance services
• Medical services
• Educational services
• Certain agricultural products

How to Register for VAT

VAT registration is done through the Revenue Service portal (rs.ge):

1. Log into your rs.ge account
2. Navigate to "Taxes" → "VAT Registration"
3. Submit the application
4. Registration is typically processed within 1-2 business days

Once registered, you'll receive a VAT registration number (same as your TIN with "VAT" designation).

Charging VAT

Standard Rate (18%)

Most goods and services are subject to the standard 18% rate. VAT is calculated on top of the net price:

Example: Net price 1,000 GEL + VAT 180 GEL = Total 1,180 GEL

Zero Rate (0%)

Zero-rated supplies include:

• Exports of goods
• International transport services
• Services to non-residents (in certain cases)

Zero-rated businesses can still reclaim input VAT, making this favorable for exporters.

Exempt Supplies

VAT-exempt supplies don't charge VAT and cannot reclaim input VAT on related purchases.

Input VAT Recovery

VAT-registered businesses can recover VAT paid on business purchases (input VAT). Requirements:

• Valid tax invoice from supplier
• Purchase must be for business purposes
• Invoice must contain all required details

Non-Recoverable VAT

Some input VAT cannot be recovered:

• Entertainment expenses
• Passenger vehicles (unless core business)
• Purchases for exempt activities

VAT Invoice Requirements

A valid VAT invoice must include:

• Invoice number and date
• Supplier's name, address, and TIN
• Customer's name, address, and TIN
• Description of goods/services
• Quantity and unit price
• VAT amount (shown separately)
• Total amount

Electronic invoices are standard in Georgia and processed through the rs.ge system.

Filing VAT Returns

Monthly Declaration

VAT returns must be filed monthly by the 15th of the following month. The return includes:

• Output VAT (VAT charged on sales)
• Input VAT (VAT paid on purchases)
• VAT payable or refundable

Payment

If output VAT exceeds input VAT, the difference must be paid by the filing deadline. Late payment incurs interest at 0.05% per day.

Refunds

If input VAT exceeds output VAT, you can:

• Carry forward the credit to offset future VAT
• Request a refund (subject to audit)

Common VAT Mistakes

Late Registration: Failing to register within 2 days of exceeding the threshold results in penalties.

Incorrect Invoices: Missing information on invoices can disqualify input VAT recovery.

Mixing Personal and Business: VAT on personal expenses is not recoverable.

Wrong Rate Applied: Charging 18% on zero-rated exports or exempt supplies.

Late Filing: Missing the 15th deadline results in penalties even if no VAT is due.

VAT and International Trade

Imports

VAT on imports is paid at customs. This VAT can be recovered as input VAT if the import is for business purposes.

Exports

Exports are zero-rated. You don't charge VAT but can recover input VAT on related purchases, making Georgia attractive for export-oriented businesses.

Services to Non-Residents

Services provided to non-residents may be outside the scope of Georgian VAT if the place of supply is abroad.

VAT for Special Tax Regimes

Micro Business

Micro businesses (1% turnover tax) are not VAT-registered and cannot charge or recover VAT.

Small Business

Small businesses can choose to register for VAT voluntarily if it benefits their business model.

Virtual Zone Person (VZP)

IT companies with VZP status follow special VAT rules for their export-oriented services.

Need Help with VAT?

VAT compliance requires careful attention to registration, invoicing, and filing. At Modern Consulting, we help businesses:

• Determine if VAT registration is beneficial
• Handle VAT registration process
• Prepare and file monthly VAT returns
• Optimize VAT recovery
• Represent clients in VAT audits