VATupdate
VAT

VAT Rates in Georgia

Quick overview

Standard Rate Reduced Rate Other Rates
18% N/A 0%, Exempt

The local name for VAT in Georgia is Damatebuli ghirebulebis gadasakhadi (D.Gh.G).

There are basically 1 VAT rates in Georgia, a Standard VAT rate of 18%

Recent developments

For more information about (recent) rate change developments in Georgia, please click HERE.

Standard rate: 18%

This rate applies for all transactions that take place in Georgia, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)/Exempt

Examples of goods and services taxable at 0% (i.e., exempt with the right to reclaim input tax)

The term “exempt” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.

  • Supply of fuel or groceries to the aircraft
  • Supply, remake, repair, servicing or lease of aircraft and equipment installed or used on an aircraft
  • Supply of goods outside Georgia (export, re-export)
  • Supply of goods or services intended for the official use of foreign diplomatic missions and equivalent representative offices as well as for the personal use of the members of such diplomatic missions and representative offices (including family members residing with them)
  • Transportation of goods under export, re-export, external processing and transit arrangements (foreign goods moving through the customs territory of Georgia) and related services
  • Transportation of goods not yet declared into import, warehouse, temporary import, internal processing or free-zone operations between points located in Georgia and related services (except for storage services)
  • Transportation of goods declared into import, warehouse, temporary import, internal processing or free-zone operations before entering the territory of Georgia from the customs border of Georgia to the destination point and related services (except for storage services)
  • Transportation of passengers and cargo and related services, if the departure or arrival point is located outside Georgia and if a unified transportation document is issued for such transportation
  • Import and supply of products to be provided on board for international flights or international sea passages
  • Transportation, loading, unloading and storage services provided for the purpose of sending (returning) empty transport facilities (including containers and wagons) outside Georgia
  • Supply of natural gas to thermoelectric power stations
  • Withdrawal of assets by the state or a local governing body from an entity’s capital if more than 50% of the shares is owned by the state or the local governing body
  • Free supply of goods or services to the state or a local governing authority
  • Supply of Georgian goods to a duty-free outlet for sale, and sale of goods and provision of catering services in a duty-free zone
  • Supply of gold to the National Bank of Georgia
  • Organized foreign tours into Georgia by tour operators and the supply of tourist packages to foreign tourists
  • Rendering of services to ships on carrying goods into the customs territory of Georgia
  • Supply of goods or services or import of goods that qualify for VAT exemption in accordance with the framework of international agreements ratified by the parliament of Georgia
  • Supply of unprocessed agricultural products produced in Georgia (except for eggs and chicken)
  • Supply/import of books and e-books, also, rendering of sales and printing services for the goods

Examples of exempt supplies of goods and services

  • Supply or import of certain medicines
  • Supply or import of passenger cars
  • Import of publications and mass media
  • Import of baby products
  • Supply of land plots
  • Supply of goods and services between Free Industrial Zone Companies
  • Conduct of financial operations or supply of financial services
  • Supply of medical services
  • Supply of educational services
  • Supply of assets under finance leases if the assets are exempt without the entitlement to credit
  • Supply of betting and gaming services
  • Import of gold for supply to the National Bank of Georgia
  • Supply or import of goods and services needed for the oil and gas industry under the Law of Georgia “on Oil and Gas”
  • Import of natural gas for electricity production
  • Import of goods by an issuer or a recipient of a grant as defined by the grant agreement
  • Import or temporary import of goods or services intended for the official use of foreign diplomatic missions and equivalent representative offices, as well as for the personal use of the members of such diplomatic missions and representative offices (including family members residing with them)
  • Import or temporary import of goods intended for the personal use of the citizens of foreign countries employed at oil and gas exploration and extraction works
  • Import of natural gas for electricity production
  • Import of goods by an issuer or a recipient of the grant as defined by the grant agreement
  • Supply of property by partnerships to their members if all the members are individuals, the partnership is not a taxpayer, and the members have not changed since the moment of establishment of partnership

 

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on August 18, 2021.

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