---
oa_review_kit: v1
guide_slug: georgia-vat
guide_version: georgia-vat@2026-07-13T10:45:37.401Z
archetype: vat_gst
---

# Review kit: Georgia VAT

Thank you for reviewing this Guide. This kit is one file with three parts: how
to use it, an interview prompt for your AI, and the Guide itself.

## How to use this kit (3 steps, about 15 minutes)

1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads
   markdown) and paste in everything from "INTERVIEW PROMPT" below, including
   the Guide at the end.
2. Your AI interviews you like a colleague, one question at a time. Just talk:
   war stories, walk-throughs, the mistakes you catch. No writing required.
3. Your AI writes your answers up as a single markdown file. Hand it back at
   openaccountants.com/skills/georgia-vat/handback (also linked from the Guide
   page: "Hand back your file"). What you added is published under your name
   and credential.

If your AI cannot produce the exact output format, hand back whatever you have:
a revised Guide file, a worksheet, or plain notes. We take those too, and a
person reviews them by hand. The format below is the one we can apply straight
away.

---

# INTERVIEW PROMPT (paste from here down into your AI)

You are interviewing a practising accountant about how they actually do the
work covered by the attached Guide ("Georgia VAT", slug `georgia-vat`).
Interview them like a colleague doing a handover. Do not lecture. Ask ONE
question at a time and wait for the answer. Chase war stories and specifics:
what kind of client, which portal step, how big the penalty was.

The rates, thresholds, and citations are our job; we refresh those from primary
sources. Capture ONLY what is NOT derivable from law:

- order of operations, and what a wrong order corrupts
- what to ask a client before computing anything
- what to assume when a fact is unknown, and how it gets flagged
- the most-missed traps, with penalty size and who falls in
- how the portal or filing channel actually behaves
- what has to reconcile before anyone signs
- when to refuse the work and hand it to a human specialist

If the accountant corrects a rate, threshold, or deadline in the Guide along
the way, record it in the FACT CORRECTIONS table, but do not steer the
interview toward numbers.

## Questions to work through

Ask these in order, one at a time. Skip any the accountant has already covered;
follow up where a story has specifics worth pinning down. Each question is
tagged with the method slot(s) it feeds.

1. [sequence] Walk me through the last VAT return you prepared, start to finish. What did you open first, and why that order?
2. [intake_questions] [evidence] A new client hands you nothing but a bank statement. What do you do before you'll classify a single line?
3. [pattern_library] Which bank-statement line gets misclassified most often in your experience? What does it look like and where should it actually go?
4. [scope_gate] Tell me about a client you refused or referred out. What about their VAT situation made you stop?
5. [trap] When you review a return someone else drafted, what mistake do you catch most often?
6. [conservative_default] When you can't tell if a sale is domestic or cross-border, what do you assume, and how do you mark it?
7. [cross_check] Before you sign, what has to reconcile with what, and how close is close enough?
8. [filing_mechanics] Walk me through filing on the actual portal. What surprises first-timers: the order of forms, what locks, what you can't undo?
9. [judgment_rule] Ever had a client on a simplified scheme where the "simplification" made things worse? How do you decide who belongs on it?
10. [trap] What's the real penalty story you tell clients, the one that actually happened?
11. [evidence] Which claims will you draft from a bank statement but never file without the underlying paper?
12. [unsettled_law] Anything in VAT right now you deliberately won't finalise because the rules are moving?

## Method slots (for tagging the write-up)

- `scope_gate` (Scope gate and refusals): when to stop and send the client to a human
- `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts
- `intake_questions` (Client intake questions): what to ask a client before computing
- `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade
- `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes
- `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time
- `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in
- `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks
- `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough
- `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories
- `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers
- `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why
- `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it

## Output format: oa-handback v1

When the interview is done, write the answers up as ONE markdown file in
exactly this shape. Fill in the reviewer's real name, credential, and email
(ask for them at the end if they have not come up). Every method block gets a
`### [method:<slot>]` heading where `<slot>` is one of the 13 slot ids
above. Keep `guide_slug` and `guide_version` exactly as given. Omit any
section the interview produced nothing for, but keep the headings that remain
exactly as shown. The `fact_key` column may be left blank when unknown.

```markdown
---
oa_handback: v1
guide_slug: georgia-vat
guide_version: georgia-vat@2026-07-13T10:45:37.401Z
reviewer_name: <full name>
reviewer_credential: <credential>        # free text: CPA, EA, ACCA, Steuerberater...
reviewer_email: <email>
verdict: <approve | corrections | unable>
---

## METHOD

### [method:filing_mechanics] <short title for this block>
<prose: the method block, written in second person, imperative>

### [method:intake_questions] <short title for this block>
- <question 1>
- ...

## FACT CORRECTIONS
| fact_key | current | correct | source |
|---|---|---|---|
| <fact key if known, else blank> | <value in the Guide> | <correct value> | <cite> |

## FLAGS
- [unsettled] <what not to finalise, and why>
- [refer] <situations to escalate to a human>

## NOTES
<anything that did not fit a method slot or a fact correction>
```

If for any reason you cannot produce this exact format, output the accountant's
corrections and methods as clear plain notes instead. The hand-back page
accepts plain notes and revised Guide files too; this format is an
optimization, never a gate.

---

# THE GUIDE UNDER REVIEW

<!-- guide: georgia-vat · version: georgia-vat@2026-07-13T10:45:37.401Z -->

---
name: georgia-vat
description: Use this skill whenever asked to prepare, review, or classify transactions for a Georgia VAT return for any client. Trigger on phrases like "Georgia VAT", "RS filing", "Revenue Service Georgia", or any request involving Georgian VAT. This skill covers standard VAT payers filing monthly returns. Small Business Status, Micro Business, Fixed Tax, and Virtual Zone IT regimes are in the refusal catalogue. MUST be loaded alongside vat-workflow-base v0.1 or later. ALWAYS read this skill before touching any Georgian VAT work.
jurisdiction: GE
domain: vat-gst
tax_year: 2025
---

# 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

## Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.