The calculation of import duties and VAT in Georgia depends entirely on the "Customs Value" of your goods. While international law and the Customs Code of Georgia designate "Method 1" (Transaction Value—the price actually paid or payable) as the primary method for valuation, Georgian customs authorities frequently challenge this to increase tax revenue. When the Revenue Service’s risk management system flags an invoice price as "too low" compared to their statistical data, they may reject your declared value and attempt to apply alternative valuation methods (Methods 2 through 6). This often results in an artificial inflation of the taxable base, forcing importers to pay significantly higher taxes than their profit margins allow.
Legal Sandbox Georgia specializes in defending the Transaction Value. We step in to prove that your invoice price is genuine, independent, and reflective of market conditions. We compile a robust evidentiary package that goes beyond the basic commercial invoice. This includes analyzing sales contracts, proof of payment (SWIFT messages), export declarations from the country of origin, and transport costs (freight and insurance). We demonstrate to the customs officer that the relationship between the buyer and seller did not influence the price, effectively blocking the authorities from arbitrarily switching to the "Fall-back Method" (Method 6) to assess higher duties.
Our team manages the communication with the Revenue Service during the clearance process or post-clearance audit. If the customs authority has already issued a decision to adjust the customs value, we file administrative appeals to challenge the assessment. We scrutinize the "comparable prices" used by customs to ensure they are truly identical or similar goods from the same market level. By rigorously defending Method 1, we ensure that your tax liability is based on the reality of your commercial transaction, not on the administrative assumptions of the state.
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