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Georgia VAT Guide 2026

Georgia's Value Added Tax (VAT) is set at a standard rate of 18% on taxable supplies of goods and services. Exports are zero-rated (0%). The registration threshold is GEL 100,000 in annual taxable turnover. The tax is administered by the Georgia Revenue Service (GRS). VAT returns are filed electronically on a monthly or quarterly basis.

Overview — VAT in Georgia

VAT in Georgia is governed by the Tax Code of Georgia and administered by the Georgia Revenue Service (GRS). The tax applies to the supply of goods and services by registered persons in the course of business, and to imports. Georgia operates a standard input-output VAT credit system. Businesses with annual turnover exceeding GEL 100,000 must register for VAT. Voluntary registration is permitted for businesses below the threshold. The tax year is the calendar year, and VAT returns are typically filed monthly. Georgia has a relatively simple VAT system with few exemptions, making it one of the more straightforward VAT regimes in the region.

VAT Rate Structure

Georgia maintains a simple VAT rate structure:

  • Standard rate — 18% on most goods and services
  • Zero rate (0%) — exports of goods, international transport, and related services
  • Exempt — financial services (insurance, lending), educational services, medical services, residential rent, and postal services

There is no reduced rate or reduced threshold for specific goods. Businesses making zero-rated supplies can reclaim input VAT on related purchases. Exempt supplies do not carry input VAT recovery, creating a cascading effect for exempt businesses.

Registration Threshold — GEL 100,000

Businesses with annual taxable turnover of GEL 100,000 or more must register for VAT with GRS. The threshold is calculated on a rolling 12-month basis. Once the threshold is exceeded, registration must be completed within 30 days. VAT-registered businesses must issue tax invoices showing the VAT amount separately, maintain proper books of account, and file regular VAT returns. Non-resident businesses supplying digital services to Georgian consumers may also be required to register for VAT regardless of turnover.

VAT Filing & Payment

VAT-registered businesses must file returns electronically through the GRS portal. The standard filing period is monthly, with the return due by the 15th of the following month. Small businesses may apply for quarterly filing with GRS approval. The VAT return reports output VAT (collected on sales) and input VAT (paid on purchases). If output VAT exceeds input VAT, the difference is payable to GRS. If input VAT exceeds output VAT, a refund may be claimed or carried forward. Late filing attracts a penalty of 0.1% of the tax due per day of delay. GRS conducts VAT audits and may perform document inspections.

VAT Refunds & Exports

Exporters and businesses with excess input VAT may claim refunds from GRS. Export of goods is zero-rated, meaning no output VAT is charged but input VAT on related purchases can be recovered. VAT refund claims are typically processed within 30–60 days. The GRS may conduct a pre-refund audit for large claims. Businesses must retain all invoices and supporting documentation for at least 6 years. Tourism-related businesses (hotels, tour operators) may also benefit from VAT refund mechanisms for foreign tourists.

FAQs

Do I need to register for VAT if my turnover is below GEL 100,000?

No, registration is only compulsory if annual turnover meets or exceeds GEL 100,000. Businesses below the threshold may voluntarily register. Voluntary registration allows input VAT recovery but requires full compliance with VAT filing obligations.

Can I reclaim VAT on business expenses?

Yes, VAT-registered businesses can reclaim input VAT on purchases used for taxable supplies. Input VAT on purchases used for exempt supplies is not recoverable. Partial exemption rules apply for mixed-use businesses.

What is the penalty for late VAT filing?

Late filing attracts a penalty of 0.1% of the tax due per calendar day of delay, up to a maximum of 30% of the tax amount. Additional fines may apply for failure to maintain proper records.

Disclaimer

This guide provides general information about Georgian VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Georgian tax advisor or the Georgia Revenue Service for advice specific to your situation. InvestmentKit does not provide tax advice.