Is grant income taxable in Georgia?

No — Article 82 of the Tax Code exempts a received grant from income tax.

How is VAT on grant purchases recovered?

By submitting a tax invoice or a payment-confirmation document to the tax authority within three months of the end of the month of the taxable operation.

What qualifies a project import for relief?

Goods envisaged by the grant agreement under the government-determined procedure, or financed by a grant or a preferential credit containing a grant element of not less than twenty-five percent.

Federal Grants in Georgia

The Tax Treatment of State Grants in Georgia

A state grant is a significant financial resource, but the relationships it creates cut across three distinct tax regimes: the income-tax treatment of the grant received, the credit or refund of value added tax paid on goods and services acquired under the grant, and the relief from import tax on grant-financed goods. This page explains each of these directions on the basis of the specific norms of the Georgian Tax Code. Two boundaries should be stated at the outset. The procedure for awarding state grants — who awards them, under what priorities and by what procedure — is governed by budget legislation and government acts and lies outside the Tax Code; what follows is the law that applies once the grant has been received. And "federal grants" is a term of federal systems of government: Georgia is a unitary state, and the grants discussed here are state and international grants governed by Georgian tax law.