---
title: "VAT Health Checks"
url: "https://legal.ge/en/service/tax-law-en/vat-health-checks-en"
field: "Tax Law"
description: "VAT diagnostics and audit: the right of credit, restrictions, the 3-year limit and fines. Legal.ge."
reviewed: "2026-06-27"
updated: "2026-10-14"
publisher: "legal.ge"
---

# VAT Health Checks

> Source: legal.ge, https://legal.ge/en/service/tax-law-en/vat-health-checks-en

## The Grounds of the Right to Credit VAT

The starting point of VAT diagnostics is the right of credit: where goods or services are intended or used for a VAT-taxable operation, the taxable person may credit the VAT paid or payable on purchase from another taxable person, the VAT payable on operations treated as supply, the VAT paid on import, and the VAT assessed under reverse charge. In addition, the VAT connected with expenses is credited where the goods or services are used for the provision of services outside the territory of Georgia, in operations exempt with the right of credit, or in defined financial services. The basis for receiving credit is a document: a tax invoice, an import declaration, or, on reverse charge, the amount reflected in the VAT declaration; in defined cases the basis is also a purchase-confirmation document of the buyer, in which the amount paid — including the VAT — must be indicated. Diagnostics is precisely the verification of these three elements — destination, document and period.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/tax-law-en/vat-health-checks-en

### Basis of credit?

Invoice, import declaration or reverse-charge record.

### Restrictions?

Entertainment, representative, defective documents, the 3-year limit.

### Correction?

In the period of the change of circumstances.

### Fines?

100 and 200 percent for invoice violations.