VAT Compliance and declaration are critical parts of a business's monthly routine. VAT administration in Georgia is strictly regulated: registration as a payer, submission of monthly declarations, and tax payment must occur precisely within established deadlines. Any lapse in the VAT system—whether a late declaration, an incorrectly issued tax invoice, or a flaw in a deduction document—automatically triggers penalties and interest. Particular attention is required for monitoring the 100,000 GEL threshold: as soon as a company's taxable turnover exceeds this mark within any continuous 12 months, a mandatory registration obligation arises. Missing this moment is one of the most common mistakes, forcing the company to pay VAT out of its own pocket for past periods without the possibility of recovering the amount from the client.
What Does VAT Compliance Service Cover?
Specialists on Legal.ge ensure your company's full compliance with tax legislation. The service includes:
- VAT Registration: Managing the mandatory or voluntary registration process on the Revenue Service portal (RS.ge).
- Monthly Filing: Preparing and submitting monthly VAT declarations no later than the 15th of the following month.
- Invoice Administration: Issuing, confirming, and correcting electronic tax invoices (e-invoices).
- Turnover Monitoring: Constant control of turnover for non-registered entities to timely detect the moment of mandatory registration.
- Reverse Charge Management: Calculating and reflecting reverse charge VAT in declarations for services received from non-residents.
Common Situations and Scenarios
One classic scenario is "crossing the threshold": small businesses often think the 100,000 GEL threshold is calculated based on the calendar year (January-December). In reality, the law considers "any continuous 12 calendar months." As a result, the company registers late and gets fined. A second scenario relates to advances: a company receives an advance payment before delivering goods. For VAT purposes, receiving an advance is already a taxation point, but many accountants wait for final delivery, leading to late filing. A third scenario is claiming VAT credit with a flawed document: a company claims VAT based on an invoice that is not uploaded to RS.ge, which will be disallowed during an audit, resulting in fines.
Georgian Legal Framework
VAT administration rules are outlined in the Tax Code of Georgia. Specifically, Article 165 defines the registration obligation, while Article 166 covers cancellation of registration. Declaration submission deadlines and rules are regulated by the Code and the Minister of Finance's Decree "On Tax Administration." All procedures are carried out electronically through the authorized page of the Revenue Service (RS.ge). The system is fully digitized, meaning discrepancies between databases (e.g., between the declaration and issued invoices) are automatically flagged by the system.
Step-by-Step Service Process
Collaboration with a specialist on Legal.ge is a continuous process. At the beginning of the month, the specialist is provided with information about executed transactions (bank statements, invoices). By the middle of the month (around the 10th-14th), the draft declaration is prepared, and the tax amount calculated. Upon client approval, the declaration is electronically submitted by the 15th. In parallel, the specialist constantly checks invoices received on RS.ge and confirms them to ensure the right to deduction is not lost.
Why Choose Legal.ge?
VAT mistakes are costly. Legal.ge allows you to hire professionals who do not just mechanically fill out declarations but insure your business against risks. Experts on our platform use modern accounting software and are well-versed in the nuances of RS.ge, ensuring accurate and timely fulfillment of your tax obligations.
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