Does a special alcohol licence exist in Georgia
A frequent question is whether the production or sale of alcoholic beverages requires a special licence. The answer is clear and should be stated at the outset: in Georgia there is no separate, special alcohol licence. This activity is not in the list of licensed activities; it operates within the excise regime established by the Tax Code and under the general requirements of food safety. So if you are planning a business in alcohol, your legal orientation is not licensing but excise-payer status and the regime of excise marks. This page explains what that regime requires.
Who is an excise payer
Under the Tax Code, an excise payer is a person who produces excise goods in Georgia; imports excise goods into Georgia; exports excise goods; supplies natural gas (in gaseous state) for motor vehicles; provides the service of completing an international call in a mobile or fixed network; or supplies imported goods specified in certain codes of the national commodity nomenclature of foreign economic activity.
For alcoholic beverages, the excise-taxable operation relates to production or import — and it is from that moment that payer status arises. The meaning of import is also defined by law: the import of excise goods is their placing under the procedure of release into free circulation in accordance with the Customs Code of Georgia.
Mandatory marking with excise marks
The central administrative instrument for placing alcoholic beverages on the market is the excise mark. Under the law, before carrying out an excise-taxable operation and/or the import of goods, mandatory marking with excise marks applies to: excise-taxable alcoholic beverages; tobacco products, including raw tobacco and tobacco waste; and liquids with or without nicotine content intended for consumption by electronic cigarette.
An excise mark may be of material or immaterial form. Producers and importers of goods subject to mandatory marking on the territory of Georgia pay the nominal value of the excise mark, whose amount and payment procedure are determined by an order of the minister of finance.
Who is exempt from marking
The law defines exceptions that are practically significant for alcoholic beverages. From mandatory marking with excise marks, save for cases determined by the minister of finance, the following are exempt: local goods intended for export; goods to be supplied at a free trade point; goods in import destined for the official use of diplomatic and equivalent missions and for the personal use of their staff, including family members living with them; goods returned in accordance with the Customs Code.
There are also exceptions specific to alcoholic beverages: exempt are alcoholic beverages bottled in containers of 0,05 litre or less, or of more than 10 litres, except beer; imported alcoholic beverages up to 4 litres in the case of postal shipment; and alcoholic beverages imported by a passenger within the limit quantity provided by law.
Prohibitions and liability
The law actively prohibits the following: carrying out a taxable operation and/or import with goods subject to marking without an excise mark — save for the exceptions; and the supply to the retail network of draft, or bottled in containers of more than 10 litres, excise alcoholic beverages, except beer. This means that marking bottled production is mandatory, and supplying it without a mark is directly prohibited.
What this means for business
The practical conclusion is this: the production and sale of alcohol in Georgia falls into the excise system instead of licensing. Plan your excise-payer status before starting production or import; ensure the purchase of excise marks and marking before the operation; take into account the exceptions for small-capacity and large containers; and follow the general food-safety requirements that apply to every participant of this market. With this approach your business will be fully compliant with the existing legislation. Legal.ge.
Mind the customs aspect as well: the moment of import is defined by the placing of the goods under the procedure of release into free circulation, so the obligation to pay excise is tied to customs procedures. Where alcoholic beverages converted into state ownership are privatized, mandatory marking with excise marks is carried out by the purchaser or recipient of the goods immediately upon completion of transport to the place of storage. In defined cases the marking service is rendered by a selected person — meaning the marking process also stands under state supervision.