Georgia imposes VAT at a standard rate of 18 per cent on supplies of goods and services made within Georgian territory, as well as on the importation of goods. For foreign companies establishing a presence in Georgia — whether through a local entity, a branch, or cross-border supply arrangements — VAT registration and compliance obligations arise once annual taxable turnover reaches the statutory threshold. Businesses supplying services electronically to Georgian customers may also trigger registration requirements regardless of physical presence.
The Georgian Tax Code distinguishes between standard-rated supplies, zero-rated supplies (principally exports of goods and certain international services), and exempt supplies (including certain financial services, healthcare, and education). Import VAT is assessed on the customs value of goods and is generally payable at the point of entry; certain categories of goods benefit from reduced or zero customs tariffs under Georgia's free trade agreements, including those concluded with the European Union, China, and several CIS states. Excise duty applies to a defined list of goods — principally petroleum products, tobacco, alcohol, and certain passenger vehicles — and is levied in addition to VAT.
For foreign clients relocating to Georgia or establishing a holding or operational structure, the VAT position should be assessed at the structuring stage. Input VAT incurred on business expenses is generally recoverable against output VAT, subject to documentary requirements under Georgian tax law. VAT refunds are available for zero-rated exporters, though administrative timelines for refund processing vary in practice.
Compliance obligations include periodic VAT returns, electronic invoicing through the Revenue Service portal, and registration with the Georgian Revenue Service before making taxable supplies. Penalties for late registration and under-declaration are proportionate to the outstanding liability and may include interest charges.
[CTA: For advice on VAT structuring, compliance obligations, or indirect tax exposure in Georgia — make an enquiry: info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76]
For further context on establishing a presence in Georgia, see our Georgia jurisdiction overview (/jurisdictions/georgia/) and our practice pages on Tax in Georgia (/jurisdictions/georgia/tax/), Tax Residency & Relocation (/jurisdictions/georgia/tax-residency/), and Market Entry & Company Formation (/jurisdictions/georgia/company-formation/).
— Nino Beridze Contributing Regional Analyst — Georgia, Vetrov & Partners vetrovpartners.com/contributions/
Nino Beridze is a contributing regional analyst advising on Georgian law matters, with a focus on business relocation, company formation, and tax structuring for foreign investors entering the Georgian market.
This publication is provided for informational purposes only and does not constitute legal advice under Russian or any other applicable law. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Vetrov & Partners is a Russian-qualified law firm. For matters governed by foreign law or requiring local admission in another jurisdiction, we collaborate with trusted counsel in the relevant jurisdiction. For advice regarding your particular situation, please contact info@vetrovpartners.com.