Georgia Vat

---
name: georgia-vat
description: "VAT in the country of Georgia (Sakartvelo, GE, currency GEL; not the US state) for tax year 2026 under Section VI of the Tax Code of Georgia. Covers who is a taxable person, compulsory registration within 2 business days of passing GEL 100,000 of taxable supplies in any 12 months, voluntary registration, the single 18% rate, exemptions with and without the right of deduction (exports, international transport, tour operators, financial services, land, medical and education), place of supply of services, reverse charge on services from non-residents, non-resident suppliers of services to consumers, input VAT deduction, the blocked items, proportional deduction, tax invoices, refunds, the monthly return and payment by the 15th, import VAT and the penalties (5% for trading unregistered, 100% and 200% invoice fines, late filing, 0.05% a day). Trigger on: Georgia VAT, dghg, VAT registration Georgia GEL 100,000, VAT return rs.ge, reverse charge Georgia. Out of scope: income tax (georgia-incom"
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/georgia-vat"
  jurisdiction: "GE"
  tax_year: "2026"
  last_updated: "2026-10-31"
  reviewed_by: "Gvantsa Amiridze"
---

# Georgia (country): value added tax (2026) v2.1

Georgia has one VAT rate, 18%, and a monthly return due by the 15th of the next month. A business must register once its taxable supplies pass GEL 100,000 in any 12 months in a row. Figures below are from Section VI (arts. 156-181^1) of the Tax Code of Georgia, consolidated on matsne.gov.ge to the law of 15 October 2026 (publication 247), read in English and checked against the Georgian text. Article letters follow the English translation.

## Who this applies to

- **Taxable person.** Any person who independently carries on an economic activity anywhere, whatever its purpose or result (Tax Code art. 158(1)). Economic activity includes entrepreneurial activity, regular supplies of goods or services (not one-off ones), and use of property for regular income. The supply of a non-residential building is always economic activity (art. 158(2)-(3)).
- **Compulsory registration.** A taxable person whose VAT-taxable supplies pass GEL 100,000 in any 12 calendar months in a row must apply to register within 2 business days (art. 165(1)). VAT is due from the supply that takes the total over GEL 100,000, including that supply (art. 165(2)).
- **What counts toward GEL 100,000.** Taxable supplies count. Exempt supplies are left out, except three kinds that do count: exempt financial or immovable property transactions where they are the person's main activity, exports of goods, and the supplies exempt with the right to deduct under art. 172(1)-(2) (art. 165(7)). Services whose place of supply is outside Georgia are not Georgian taxable supplies (art. 159(1)(b), 162^1(1)) and do not count.
- **Cancelling registration.** A VAT payer may apply to cancel once taxable supplies, counted the same way, were not more than GEL 100,000 in the last 12 calendar months and a year has passed since it last registered (art. 165^1(1)). A cancellation on request takes effect from the first day of the next month (art. 165^1(3)(c)).
- **Other compulsory cases.** A producer of excisable goods registers before supplying them (art. 165(3)). A non-resident with a fixed establishment in Georgia owes VAT from its first supply and registers by the last day of that month (art. 165(9)).
- **Voluntary registration** is allowed. The person is a VAT payer from the day of the application (art. 165(6)).
- **Liable without registration**: importers, tax agents under reverse charge, and non-resident suppliers of services whose place of supply is Georgia when the supply is not reverse charged (art. 165^2(2)).
- **Special statuses.** A micro business that registers for VAT loses its status (art. 85(2)(c)). A small business that must register does so under art. 165 and may deduct VAT on its stock at that date (art. 92). Income from a fixed tax activity does not count toward the threshold (art. 165(7^1)).
- Not here: income tax and the small business regime (see [georgia-income-tax](georgia-income-tax.md)); profit tax (see [ge-corporate-income-tax](ge-corporate-income-tax.md)); excise and import duty.

## Rates, bands and thresholds

| Item | Rate or amount | Year | Source |
|---|---|---|---|
| VAT rate | 18% | 2026 | Tax Code art. 166, https://matsne.gov.ge/en/document/view/1043717?publication=247 |
| Compulsory registration threshold | GEL 100,000 of taxable supplies in any 12 calendar months in a row | 2026 | art. 165(1), same URL |
| Time to apply after passing the threshold | 2 business days | 2026 | art. 165(1), same URL |
| Cancelling registration on request | supplies not more than GEL 100,000 in the last 12 months and at least a year since registration | 2026 | art. 165^1(1), same URL |
| Reorganisation or contribution in kind from a VAT payer | register before the first taxable supply, at the latest 10 days after | 2026 | art. 165(4)-(5), same URL |
| Accounting period | calendar month | 2026 | art. 167, same URL |
| Return and payment | by the 15th of the next month | 2026 | art. 168(1), same URL |
| Import VAT on listed goods (codes 8401-9033) | within 45 days of release | 2026 | art. 168(3), same URL |
| Proportional deduction, small exempt share | ignore if exempt supplies are under 5% of turnover | 2026 | art. 177(7), same URL |
| Fixed assets used for mixed supplies: adjustment period | 10 years for immovable property, 5 years for other assets | 2026 | art. 177(6), same URL |
| Time limit to deduct VAT on an invoice | 3 years from the end of the year of the supply | 2026 | art. 178(d), same URL |
| VAT refund to foreign tourists | goods over GEL 200 a receipt (excluding VAT), taken out within 3 months | 2026 | art. 181(6)(b), same URL |
| Trading while unregistered | fine of 5% of taxable supplies in the period | 2026 | art. 282(1), same URL |
| Penalty interest | 0.05% of the unpaid tax a day | 2026 | art. 272(4), same URL |

## The taxable base

**Taxable amount.** The consideration received or due for the supply, excluding VAT, including any subsidy linked to the price; the same rule applies to barter (art. 164(1)). On import, it is the customs value plus taxes and duties other than VAT and the costs of transport, packing and insurance to the first destination (art. 164^1(1)-(2)).

**Exempt without the right to deduct** (input VAT on them is not recoverable): financial services, which include insurance and reinsurance and the services of insurance brokers and agents (art. 15(2)(h)); lotteries and gambling; supply of land; certain transfers of land and flats to individuals; regulated urban passenger transport; newspapers and magazines (art. 171(1)); medical services, education by educational institutions, child care and social services, universal postal services and the sale of postage stamps at face value by the state postal operator, funeral services and other items in art. 170(1) (postal: art. 170(1)(n)-(o)). The lease of goods whose supply is exempt without deduction is also exempt (art. 171(1)(j)).

**Exempt with the right to deduct** (input VAT is recoverable): supply of goods outside Georgia, export and re-export (art. 172(4)(e)); carriage of exported or transit goods and related services (art. 172(1)(h)); international passenger carriage on one transport document (art. 172(1)(i)); organised bringing of foreign tourists into Georgia by tour operators and tourist products supplied to them (art. 172(4)(o)); supplies to diplomatic missions (art. 172(3)); and the other items in art. 172. Imports exempt from VAT are listed in art. 173.

**Place of supply of services.** To a taxable person (any person except a non-entrepreneur individual), services are supplied where the customer is established. To a non-taxable person, where the supplier is established (art. 162^1(2)-(3)). Exceptions: services linked to immovable property are supplied where it is; restaurant and food services where performed; event admissions where the event takes place (art. 162^1(4), (6)-(7), (11)). Telecom, broadcasting, electronic services, IP rights, advertising, consultancy, legal, accounting and data services to a non-taxable person are supplied where that person lives (art. 162^1(14)). Services supplied outside Georgia are outside Georgian VAT (art. 162^1(1)).

**Reverse charge.** A service supplied in Georgia by a person not established in Georgia to a tax agent is reverse charged (art. 161(1)(a)). A tax agent is any person established in Georgia, except a non-entrepreneur individual and a Free Industrial Zone enterprise (art. 161(2)(a)). The agent charges VAT on the amount paid for the service (art. 161(3)(a)). A VAT-registered agent declares it on its return and may deduct it under the normal rules (art. 175(1)(d), 176(1)(c)). An agent that is not VAT-registered pays it by the 15th of the next month (art. 168(4)). Exempt supplies are not reverse charged (art. 161(6)(a)).

**Input VAT.** A taxable person deducts VAT on purchases, imports and reverse charges used for taxable supplies (art. 175(1)), and on purchases used for supplies outside Georgia or exempt with the right to deduct (art. 175(2)). The deduction needs a tax invoice, an import declaration, or the reverse-charge entry in the return (art. 176(1)).

**Blocked input VAT** (art. 178): social, entertainment and representation expenses, unless the goods or services at the event are themselves taxed; purchases used for supplies with no right to deduct; invoices that do not identify the seller or were not issued properly; invoices more than 3 years after the end of the year of the supply; fake documents and invoices for fictitious transactions.

**Proportional deduction.** Where purchases serve both taxable and exempt-without-deduction supplies, only the taxable share is deductible. The share is taxable turnover over taxable plus exempt turnover, excluding VAT, set on last year's annual figure and trued up in the last period of the year (art. 177(1)-(4)). Sales of the business's own fixed assets, and property and financial transactions that are not its main activity, are left out of the fraction (art. 177(3)). If the exempt part is under 5% of turnover, the rule does not apply (art. 177(7)).

**Tax invoices.** A VAT-registered person issues a tax invoice when it supplies another taxable person, in writing or electronically, and to a consumer on request (art. 180(1)-(3)). Forms and rules are set by the Minister of Finance (art. 180(5)).

**Refunds.** Where deductible VAT exceeds VAT due for the period, the excess is refundable under art. 63 (art. 181(1), (4)).

## Deadlines and filing

| What | Deadline | Source |
|---|---|---|
| Apply for compulsory registration | within 2 business days of passing GEL 100,000 | Tax Code art. 165(1) |
| Non-resident with a fixed establishment | by the last day of the month of its first supply | art. 165(9) |
| Monthly VAT return and payment | by the 15th of the month after the month | art. 167, 168(1) |
| Reverse-charge VAT of an unregistered tax agent | by the 15th of the month after the month | art. 168(4) |
| Import VAT | with the import taxes; listed goods within 45 days of release | art. 168(2)-(3) |
| Claim input VAT on an invoice | within 3 years from the end of the year of the supply | art. 178(d) |
| Unfiled returns on insolvency | within 15 days of the court ruling | art. 168(5) |

Returns are filed electronically with the Revenue Service (rs.ge).

## Penalties and interest

| Breach | Penalty | Source |
|---|---|---|
| Trading without VAT registration | 5% of the taxable supplies made while unregistered; the late filing and understatement fines then do not apply to those periods | Tax Code art. 282(1), (4) |
| Not issuing a tax invoice when the buyer asks | 100% of the VAT on the supply | art. 282(2) |
| Invoice for a fictitious or non-commodity transaction, or a fake invoice | 200% of the VAT shown | art. 282(3) |
| Late return, up to 2 months | 5% of the tax on the return (Georgian text of art. 274(1); the English translation still shows an older wording of 5% a month capped at 30%) | art. 274(1) |
| Late return, more than 2 months | 10% of the tax on the return | art. 274(2) |
| Understated VAT, or overstated deduction or refund | 10% (up to 5% understated), 25% (over 5% to 20%), 50% otherwise | art. 275(2)-(3) |
| Late payment | 0.05% of the unpaid tax a day | art. 272(4) |
| Breach of the registration rules | GEL 500 | art. 273 |

## Cross-border points

- **Exports of goods** are exempt with the right to deduct (art. 172(4)(e)).
- **Services to foreign businesses** are supplied where the customer is established, so they are outside Georgian VAT (art. 162^1(1), (3)(a)). Related input VAT stays deductible (art. 175(2)(a)).
- **Services bought from abroad** by a business in Georgia are reverse charged (art. 161).
- **Non-resident suppliers to Georgian consumers** of electronic, telecom, broadcasting and similar services supply them in Georgia (art. 162^1(14)) and must account for the VAT without the usual registration duty, under rules of the Minister of Finance (art. 165^2(2)(e)).
- **Imports** bear VAT on the customs value plus duties and costs (art. 164^1), paid with import taxes (art. 168(2)).
- **Foreign tourists** can reclaim VAT on goods over GEL 200 a receipt taken out of Georgia within 3 months (art. 181(5)-(6)).
- **EU businesses** with no fixed establishment in Georgia can reclaim Georgian VAT on business purchases through an authorised representative (art. 181^1).

## Worked examples

**Example 1. Standard monthly return.** A VAT-registered Georgian company makes taxable domestic sales of GEL 200,000 (net) in March 2026, so output VAT is GEL 36,000. It buys goods and services for GEL 90,000 (net) with proper tax invoices, input VAT GEL 16,200. It pays a US software company GEL 5,000 for a subscription, which is reverse charged: GEL 900 output and GEL 900 input. It spends GEL 2,000 (net) on a client dinner; the GEL 360 VAT is blocked (art. 178(a)). VAT payable for March is GEL 19,800, filed and paid by 15 April 2026.

```oa-check
name: Georgia VAT, monthly return with reverse charge and blocked entertainment, 2026
inputs:
  sales_net: 200000
  purchases_net: 90000
  foreign_service: 5000
  entertainment_net: 2000
  rate: 0.18
steps:
  - output_vat: sales_net * rate
  - reverse_charge_output: foreign_service * rate
  - input_vat: purchases_net * rate
  - reverse_charge_input: foreign_service * rate
  - blocked_vat: entertainment_net * rate
  - vat_payable: output_vat + reverse_charge_output - input_vat - reverse_charge_input
expected:
  output_vat: 36000
  reverse_charge_output: 900
  input_vat: 16200
  reverse_charge_input: 900
  blocked_vat: 360
  vat_payable: 19800
```

**Example 2. Proportional deduction.** A company makes taxable supplies of GEL 600,000 and exempt financial services (its main activity) of GEL 150,000 in 2025, both excluding VAT. Exempt supplies are 20% of turnover, above the 5% floor (art. 177(7)), so the proportion rule applies. The deductible share is 600,000 / 750,000 = 80% (art. 177(2)). In a 2026 month it pays GEL 10,000 VAT on shared costs that cannot be split, so it deducts GEL 8,000. The share is trued up to the 2026 figure in the December return (art. 177(4)(a)).

```oa-check
name: Georgia VAT, proportional deduction at 80%, 2026
inputs:
  taxable_turnover: 600000
  exempt_turnover: 150000
  mixed_input_vat: 10000
  floor: 0.05
steps:
  - total_turnover: taxable_turnover + exempt_turnover
  - exempt_share: exempt_turnover / total_turnover
  - above_floor: exempt_share - floor
  - deductible_share: taxable_turnover / total_turnover
  - deductible_vat: mixed_input_vat * deductible_share
  - blocked_vat: mixed_input_vat - deductible_vat
expected:
  total_turnover: 750000
  exempt_share: 0.2
  above_floor: 0.15
  deductible_share: 0.8
  deductible_vat: 8000
  blocked_vat: 2000
```

## Ask the client first

1. Is this the country of Georgia (GEL), not the US state?
2. Taxable supplies in each of the last 12 months (including exports of goods and the art. 165(7) items), and the date the GEL 100,000 total was passed?
3. Is the client a company, an individual entrepreneur, or on micro, small or fixed tax status? Any Free Industrial Zone link?
4. Which supplies are exports, services to foreign customers, or exempt (financial, land, medical, education)?
5. Which services are bought from suppliers outside Georgia?
6. Are all purchase invoices issued properly through rs.ge, and are any more than 3 years old?

## Sources

| Source | URL | Read on |
|---|---|---|
| Tax Code of Georgia, English, consolidated publication 247 (to the law of 15 October 2026): arts. 15, 63, 85, 92, 156-181^1, 272-275, 282 | https://matsne.gov.ge/en/document/view/1043717?publication=247 | 2026-10-31 |
| Tax Code of Georgia, Georgian text, publication 247 (cross-check of arts. 165, 166, 168, 171, 172, 274; art. 274(1) followed where the English differs) | https://matsne.gov.ge/ka/document/view/1043717?publication=247 | 2026-10-31 |

Not yet confirmed: arts. 170-172 were amended by laws of June and November 2025 that the English translation does not show in full, so the full exemption lists were read only in summary (the items named above appear in both texts); the Minister of Finance rules on non-resident suppliers to consumers (art. 165^2(2)(e)), reverse-charge reporting (art. 161(4)) and tax invoices (art. 180(5)); whether residential lease is taxable (not listed among the exemptions in arts. 170-172 as read); the old version blocked input VAT on cars and fuel for personal use, which art. 178 does not list (deduction then follows the use test in art. 175); Virtual Zone and Free Industrial Zone rules; the rs.ge return boxes; refund procedure under art. 63; excise and wine rules; the exchange rate for supplies invoiced in foreign currency (the old version named the National Bank of Georgia rate; the article was not read).

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-31. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `georgia-vat` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/georgia-vat. If neither is available, confirm every figure against the official source pages cited above before relying on it.