Georgia introduces renewed tax conditions

Georgia Materials 24 February 2022 12:59 (UTC +04:00)
Georgia introduces renewed tax conditions

BAKU, Azerbaijan, Feb. 24

By Maryana Akhmedova – Trend:

About 11,000 taxpayers in Georgia will follow renewed tax conditions related to value-added tax (VAT) from March 1, 2022, Trend reports via the Revenue Service of the Ministry of Finance of Georgia.

According to the Revenue Service, the change will apply to those with the status of “unqualified VAT payer” who have a tax debt of more than 50,000 Georgian lari (about $16,000).

“Renewed conditions suppose the possibility of issuing invoices automatically using special rule status,” the statement said.

The special rule for using the tax invoice implies that the beneficiaries, on the basis of electronic tax invoices, will be charged VAT if the relevant amount of VAT is paid to the budget after the tax invoice is issued (by the seller, or the buyer, in favor of the seller).

At the same time, the person providing the goods, or services, is not restricted in calculating the amount of VAT on the tax invoice.

Also, with the implemented change, if a person no longer has a tax debt within the above amount, he will be automatically excluded from the special rule of using the tax invoice and again, the rule of using the usual tax invoice will be restored.

A person newly registered as a VAT payer with unqualified VAT status and a person who has not been active for any 12 consecutive calendar months will be automatically transferred to a tax invoice for a period of one year upon proper examination.

“In order to raise awareness of taxpayers about this change, the Revenue Service plans meeting with entrepreneurs and representatives of various business associations across the country, both,” the statement concluded.


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