# georgia-vat

## Section 1 — Quick reference

**Quick reference table**

| Field | Value |
| --- | --- |
| Country | Georgia |
| Tax name | VAT (ghirebuleba damatebiti gadasakhadi) |
| Standard rate | 18% |
| Reduced rates | None (single standard rate) |
| Zero rate | 0% (exports, international transport, FIZ supplies, diplomatic) |
| Return form | Monthly VAT declaration (electronic via rs.ge) |
| Filing portal | https://rs.ge |
| Authority | Revenue Service (RS), Ministry of Finance |
| Currency | GEL (Georgian Lari) only |
| Filing frequency | Monthly |
| Deadline | 15th of the month following the reporting month |
| Companion skill | **vat-workflow-base v0.1 or later — MUST be loaded** |
| Contributor | Open Accounting Skills Registry |
| Validated by | Pending local practitioner validation |
| Validation date | April 2026 |

**Key VAT return sections**

| Section | Meaning |
| --- | --- |
| Part 1 | Taxpayer information (TIN, name, period) |
| Part 2 | Taxable supplies at 18% — base |
| Part 3 | Zero-rated supplies (exports) |
| Part 4 | Exempt supplies |
| Part 5 | Total supplies |
| Part 6 | Output VAT (18% of taxable) |
| Part 7 | Reverse charge VAT (imported services) |
| Part 8 | Total output VAT |
| Part 9 | Input VAT on domestic purchases |
| Part 10 | Input VAT on imports (customs) |
| Part 11 | Input VAT on reverse charge (creditable) |
| Part 12 | Total input VAT credit |
| Part 13 | Net VAT payable |
| Part 14 | Credit brought forward |
| Part 15 | Net payable or credit |

**Conservative defaults**

| Ambiguity | Default |
| --- | --- |
| Unknown rate on a sale | 18% |
| Unknown VAT status of a purchase | Not deductible |
| Unknown counterparty country | Domestic Georgia |
| Unknown business-use proportion | 0% recovery |
| Unknown SaaS billing entity | Reverse charge (Part 7/11) |
| Unknown blocked-input status | Blocked |

**Red flag thresholds**

| Threshold | Value |
| --- | --- |
| HIGH single-transaction size | GEL 15,000 |
| HIGH tax-delta on a single default | GEL 1,000 |
| MEDIUM counterparty concentration | >40% |
| MEDIUM conservative-default count | >4 |
| LOW absolute net VAT position | GEL 25,000 |

## Section 2 — Required inputs and refusal catalogue

### Required inputs

**Minimum viable** — bank statement for the month. Acceptable from: TBC Bank, Bank of Georgia, Liberty Bank, Basis Bank, Credo Bank, ProCredit Bank Georgia, or any other.

**Recommended** — invoices (especially e-invoices from rs.ge), client TIN (9 or 11 digits).

**Ideal** — complete e-invoice register from rs.ge, prior period declaration.

### Refusal catalogue

- **R-GE-1 — Small Business Status** — "Small Business Status entities do not file VAT returns. Out of scope." (Trigger: client on SBS (1% turnover tax, below GEL 500,000))
- **R-GE-2 — Micro Business** — "Micro businesses are exempt from VAT. Out of scope." (Trigger: client is micro business (below GEL 30,000, exempt))
- **R-GE-3 — Fixed Tax** — "Fixed tax entities have separate obligations. Out of scope." (Trigger: client on fixed tax regime)
- **R-GE-4 — Virtual Zone IT company** — "Virtual Zone IT companies have special tax treatment. Please use a qualified Georgian practitioner for confirmation of scope." (Trigger: registered Virtual Zone IT entity)
- **R-GE-5 — Free Industrial Zone (FIZ)** — "FIZ entities have special VAT rules. Out of scope." (Trigger: FIZ entity)
- **R-GE-6 — Partial exemption** — "Input VAT apportionment required. Use a qualified practitioner." (Trigger: mixed taxable and exempt)
- **R-GE-7 — Income tax** — "This skill handles VAT only." (Trigger: user asks about income/profit tax)

## Section 3 — Supplier pattern library

### 3.1 Georgian banks (fees exempt — exclude)

**Georgian banks pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| TBC BANK, TBC | EXCLUDE | Financial service, exempt |
| BANK OF GEORGIA, BOG | EXCLUDE | Same |
| LIBERTY BANK, BASIS BANK, CREDO BANK | EXCLUDE | Same |
| PROCREDIT GEORGIA, TERABANK | EXCLUDE | Same |
| PROTSENTI, INTEREST | EXCLUDE | Interest, out of scope |
| SESXI, LOAN | EXCLUDE | Loan principal |

### 3.2 Government and statutory bodies (exclude)

**Government bodies pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| REVENUE SERVICE, RS.GE | EXCLUDE | Tax payment |
| SABAZHOEBI, CUSTOMS | EXCLUDE | Duty (import VAT separate) |
| SAPENSIA, PENSION AGENCY | EXCLUDE | Pension contribution |
| IUSTITSII, JUSTICE HOUSE | EXCLUDE | Government fee |

### 3.3 Utilities

**Utilities pattern table**

| Pattern | Treatment | Box | Notes |
| --- | --- | --- | --- |
| TELASI, GWP, ENERGO-PRO | Domestic 18% | Part 9 | Electricity/water |
| SOCAR GEORGIA, GAZPROM GE | Domestic 18% | Part 9 | Gas |
| MAGTICOM, BEELINE GE, GEOCELL | Domestic 18% | Part 9 | Telecoms |
| SILKNET | Domestic 18% | Part 9 | Internet/TV |

### 3.4 Insurance (exempt — exclude)

**Insurance pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| ALDAGI, IC GROUP, TBC INSURANCE | EXCLUDE | Exempt |
| DAZGHVEVA, INSURANCE | EXCLUDE | Same |

### 3.5 Food and entertainment (blocked)

**Food and entertainment pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| CARREFOUR GE, GOODWILL, NIKORA, FRESCO | Default BLOCK | Personal provisioning |
| RESTORAN, RESTORANI, KAFE, BAR | Default BLOCK | Entertainment blocked |

### 3.6 SaaS — non-resident (reverse charge)

**SaaS pattern table**

| Pattern | Box | Notes |
| --- | --- | --- |
| GOOGLE, MICROSOFT, ADOBE, META | Part 7/11 | Reverse charge at 18% |
| SLACK, ZOOM, NOTION, AWS, ANTHROPIC, OPENAI | Part 7/11 | Same |

### 3.7 Professional services

**Professional services pattern table**

| Pattern | Treatment | Box | Notes |
| --- | --- | --- | --- |
| NOTARIUSI, NOTARY | Domestic 18% | Part 9 | If business purpose |
| AUDITORI, BUKHGALTER | Domestic 18% | Part 9 | Deductible |
| ADVOKATI, LAWYER | Domestic 18% | Part 9 | If business matter |

### 3.8 Payroll and exclusions

**Payroll and exclusions pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| KHELFASI, SALARY | EXCLUDE | Wages |
| DIVIDENDI | EXCLUDE | Out of scope |
| SHIDA, INTERNAL, OWN TRANSFER | EXCLUDE | Internal |
| ATM, NAGHDI | TIER 2 — ask | Default exclude |

## Section 4 — Worked examples

### Example 1 — Non-resident SaaS reverse charge

**Input line:** `03.04.2026 ; NOTION LABS INC ; DEBIT ; Subscription ; USD 16.00 ; GEL 43.20`

**Reasoning:** US entity. Reverse charge at 18%. Part 7 (output VAT), Part 11 (input credit). Net zero.

**Example 1 result table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box (in) | Box (out) | Default? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 03.04.2026 | NOTION LABS INC | -43.20 | -43.20 | 7.78 | 18% | Part 11 | Part 7 | N |

### Example 2 — Domestic purchase

**Input line:** `10.04.2026 ; MAGTICOM ; DEBIT ; Internet April ; -45.00 ; GEL`

**Example 2 result table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 10.04.2026 | MAGTICOM | -45.00 | -38.14 | -6.86 | 18% | Part 9 | N |

### Example 3 — Entertainment blocked

**Input line:** `15.04.2026 ; RESTORAN SHEMOIKHEDE ; DEBIT ; Business dinner ; -250.00 ; GEL`

**Example 3 result table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 15.04.2026 | RESTORAN SHEMOIKHEDE | -250.00 | -250.00 | 0 | — | — | Y | "Entertainment: blocked" |

### Example 4 — Export of IT services (zero-rated)

**Input line:** `22.04.2026 ; TECHCORP GMBH ; CREDIT ; IT services ; +8,100.00 ; GEL`

**Example 4 result table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? | Question? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 22.04.2026 | TECHCORP GMBH | +8,100 | +8,100 | 0 | 0% | Part 3 | Y | "Verify export docs" |

### Example 5 — Motor vehicle blocked

**Input line:** `28.04.2026 ; TEGETA MOTORS ; DEBIT ; Car lease ; -1,200.00 ; GEL`

**Example 5 result table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 28.04.2026 | TEGETA MOTORS | -1,200.00 | -1,200.00 | 0 | — | — | Y | "Vehicle: blocked" |

### Example 6 — Import of goods

**Input line:** `25.04.2026 ; CUSTOMS ; DEBIT ; Import VAT ; -5,400.00 ; GEL`

**Example 6 result table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 25.04.2026 | CUSTOMS | -5,400 | -4,576 | -824 | 18% | Part 10 | N |

## Section 5 — Tier 1 classification rules (compressed)

### 5.1 Standard rate 18% (Tax Code Article 164)

- **Standard rate** — 18% (Single rate. Sales to Part 2/6. Purchases to Part 9.)  _(Tax Code of Georgia, Article 166)_

### 5.2 Zero rate

- **Zero rate applicability** — Exports, international transport, FIZ supplies, diplomatic. Part 3.

### 5.3 Exempt supplies (Article 168)

- **Exempt supplies** — Financial, insurance, medical, educational, residential rental, public transport, postal, cultural, agricultural land, government.  _(Tax Code of Georgia, Articles 170–171)_

### 5.4 Reverse charge — non-resident services (Article 161)

- **Reverse charge treatment** — Self-assess at 18%. Part 7 (output), Part 11 (input credit). Net zero.  _(Tax Code of Georgia, Article 160)_

### 5.5 Import VAT

- **Import VAT rule** — At customs. Base = customs value + duties + excise. 18%. Part 10.
- **Import VAT base formula** — Base = customs value + duties + excise

### 5.6 Blocked input VAT (Article 177)

- **Blocked input VAT categories** — Motor vehicles for personal use, entertainment/representation, personal consumption, no valid invoice, from non-VAT-registered supplier, for exempt supplies, fuel for non-commercial vehicles, gifts/donations.  _(Tax Code of Georgia, Article 178)_

### 5.7 Electronic invoicing

- **Electronic invoicing requirement** — All VAT-registered taxpayers issue invoices via rs.ge. Input credit validated against system.

## Section 6 — Tier 2 catalogue (compressed)

### 6.1 Fuel/vehicles — *Default:* 0%. *Question:* "Car or commercial?"

- **Fuel/vehicles default** — Default: 0%. Question: "Car or commercial?"

### 6.2 Entertainment — *Default:* block.

- **Entertainment default** — Default: block.  _(Tax Code of Georgia, Article 178)_

### 6.3 SaaS entities — *Default:* reverse charge. *Question:* "Check invoice."

- **SaaS entities default** — Default: reverse charge. Question: "Check invoice."  _(Tax Code of Georgia, Article 160)_

### 6.4 Virtual Zone IT — *Default:* R-GE-4 fires if suspected.

- **Virtual Zone IT default** — Default: R-GE-4 fires if suspected.

### 6.5 Owner transfers — *Default:* exclude.

- **Owner transfers default** — Default: exclude.

### 6.6 Foreign incoming — *Default:* zero-rated. *Question:* "Export docs?"

- **Foreign incoming default** — Default: zero-rated. Question: "Export docs?"

### 6.7 Large purchases — *Question:* "Capital asset?"

- **Large purchases question** — Question: "Capital asset?"

### 6.8 Mixed-use phone — *Default:* 0%.

- **Mixed-use phone default** — Default: 0%.

### 6.9 Cash withdrawals — *Default:* exclude.

- **Cash withdrawals default** — Default: exclude.

### 6.10 Wine industry — *Default:* 18% domestic, 0% export. *Question:* "Confirm excise obligations."

- **Wine industry default** — Default: 18% domestic, 0% export. Question: "Confirm excise obligations."

## Section 7 — Excel working paper template

Per `vat-workflow-base` Section 3 with Georgia-specific box codes.

## Section 8 — Georgian bank statement reading guide

**CSV conventions.** TBC Bank and Bank of Georgia export in CSV with semicolons or commas. DD.MM.YYYY or ISO dates depending on setting.

**Georgian terms.** Khelfasi (salary), protsenti (interest), sesxi (loan), naghdi (cash), shida (internal), sabazhoebi (customs), dazghveva (insurance).

**Internal transfers.** Between client's TBC, BOG, Liberty accounts. Exclude.

**Foreign currency.** Convert to GEL at National Bank of Georgia rate.

**Wine exports.** Georgia is a major wine exporter. Wine export receipts are zero-rated. Excise is separate.

## Section 9 — Onboarding fallback

### 9.1 Entity type — *Fallback:* "Sole trader or company (LLC/JSC)?"

- **Entity type fallback** — Fallback: "Sole trader or company (LLC/JSC)?"

### 9.2 VAT registration — *Fallback:* "Standard VAT, Small Business, Micro, or Fixed Tax?"

- **VAT registration fallback** — Fallback: "Standard VAT, Small Business, Micro, or Fixed Tax?"

### 9.3 TIN — *Fallback:* "What is your TIN?"

- **TIN fallback** — Fallback: "What is your TIN?"

### 9.4 Period — *Inference:* statement dates.

- **Period inference** — Inference: statement dates.

### 9.5 Industry — *Inference:* wine, IT, tourism from counterparties. *Fallback:* "What does the business do?"

- **Industry inference/fallback** — Inference: wine, IT, tourism from counterparties. Fallback: "What does the business do?"

### 9.6 Virtual Zone — *Fallback:* "Are you a Virtual Zone IT company?"

- **Virtual Zone fallback** — Fallback: "Are you a Virtual Zone IT company?"

### 9.7 Credit B/F — *Always ask.*

- **Credit B/F** — Always ask.

### 9.8 Cross-border — *Fallback:* "Customers outside Georgia?"

- **Cross-border fallback** — Fallback: "Customers outside Georgia?"

## Section 10 — Reference material

### Sources

1. Tax Code of Georgia — Articles 156–181
2. Revenue Service — https://rs.ge
3. National Bank of Georgia rates — https://www.nbg.gov.ge

### Known gaps

1. Virtual Zone IT regime not covered in detail. 2. FIZ rules not covered. 3. Wine excise not covered.

### Change log

- **v2.0 (April 2026):** Full rewrite to Malta v2.0 10-section structure.

## End of Georgia VAT Skill v2.0

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