Georgian VAT compliance, handled with the right zero-rating positioning.

What you get#

Honest VAT positioning for your specific Georgian configuration. For most foreign-client configurations under the 100,000 GEL annual turnover threshold, the answer is "you don't need VAT registration — your existing configuration sits cleanly outside the VAT regime." For configurations crossing the threshold or pursuing voluntary registration for VAT-recovery reasons, we handle the registration setup, the ongoing monthly VAT returns, and the cross-border positioning that determines whether your supply chain qualifies for zero-rating.

The structure has four other clean properties:

The 100,000 GEL threshold counts domestic-supply turnover specifically. Mandatory VAT registration triggers at 100,000 GEL annual turnover within any 12-month rolling period — but the threshold is on domestic-supply turnover specifically, not total turnover. Foreign-services exports often don't count toward the threshold under Georgian VAT rules. This is why many high-revenue foreign-client configurations stay below the registration trigger despite generating substantial total revenue: the foreign-client work zero-rates as exports, and only the (often minimal) Georgian-domestic-supply turnover counts toward the threshold.

Zero-rating for exports keeps most foreign-client configurations outside VAT. Services exported to non-Georgian clients are typically zero-rated under Georgian VAT rules — meaning the supply is technically taxable but the rate is 0%, and (when registered) input VAT recovery applies. For foreign-client freelancers and IT contractors operating under IE+SBS or LLC structures, this means the foreign-client work doesn't generate VAT liability and doesn't push the configuration toward registration. The "VAT positioning" question typically resolves to confirming the zero-rating applies to your specific configuration and isn't undermined by Georgian-domestic touchpoints.

Voluntary registration trade-offs. Below-threshold configurations can voluntarily register for VAT to recover input VAT on Georgian operational expenses (Georgian office lease, Georgian-paid suppliers, Georgian SaaS tools, Georgian banking fees). The trade-off: voluntary registration adds compliance overhead (monthly VAT returns + careful supply-chain tracking) in exchange for input VAT recovery. Trade-off math depends on input VAT volume — high-input-VAT configurations (substantial Georgian operations with significant Georgian operational spend) often benefit from voluntary registration; low-input-VAT configurations typically don't.

Cross-border supply-chain analysis when configurations are complex. Multi-jurisdiction supply chains (re-exports, imports, EU-VAT interaction, mixed Georgian-and-foreign clientele) require careful VAT positioning to avoid registration in error or zero-rating misapplication. We work through the supply-chain mechanics during the consultation and align the VAT positioning before any registration or compliance setup.

The combined effect: VAT positioning that fits your actual configuration honestly, with full compliance handling when registration is the right path and clean below-threshold operation when it isn't.

What we do#

The first 30 minutes of any VAT conversation is determining whether VAT registration is actually in scope for your configuration.

Step 1 — Threshold and supply-chain analysis. We work through your specific configuration: revenue scale (total + domestic-supply portion), client base (foreign vs Georgian-domestic), supply-chain mechanics (any re-exports, imports, EU-customer touchpoints, mixed configurations), Georgian operational footprint (substance, employees, lease arrangements). The output identifies whether you're under the threshold (most foreign-client configurations are), approaching the threshold (we monitor and plan ahead of the trigger), already over the threshold (registration setup), or pursuing voluntary registration (input-VAT-recovery trade-off analysis).

Step 2 — VAT registration setup (when applicable). For configurations registering — whether mandatory (crossed threshold) or voluntary — we handle the registration setup with the Revenue Service. The registration adds VAT-taxpayer status to your existing rs.ge taxpayer account; we coordinate the registration filing and confirm activation. Registration setup typically completes within 1–2 weeks.

Step 3 — Monthly VAT returns via delegated rs.ge access. Active VAT-registered taxpayers file monthly VAT returns on the regulatory deadline (typically the 15th of the month following the reporting month). We file via delegated rs.ge access on the regulatory cadence — including detailed transaction-level reporting where required, zero-rating evidence tracking for exports, and any reverse-charge mechanics that apply.

Step 4 — Cross-border positioning maintenance. For configurations with cross-border supply chains, we maintain the VAT positioning over time — monitoring whether zero-rating evidence remains supportable, whether new client touchpoints affect the positioning, whether configuration changes warrant a positioning re-analysis. The VAT positioning isn't a one-time setup; it requires ongoing maintenance as the operations evolve.

What's included#

VAT positioning consultation (the standalone engagement for most readers under threshold). We confirm whether your configuration is under threshold, identify whether voluntary registration would benefit your configuration, brief you on threshold-monitoring triggers if your turnover is approaching the threshold. For most foreign-client configurations under threshold, the consultation outcome is "no registration needed — your foreign-client zero-rating keeps you outside VAT" and that's the entire engagement.

VAT registration setup (when registration applies). Mandatory registration when threshold is crossed, voluntary registration when input-VAT-recovery trade-offs warrant. Registration filing with the Revenue Service, activation confirmation, integration with monthly accounting engagement.

Ongoing monthly VAT returns (when registered). Monthly VAT return filings on the regulatory deadline via delegated rs.ge access. Transaction-level reporting where required, zero-rating evidence assembly for exports, reverse-charge mechanics where applicable. Bundled with monthly accounting at an additional monthly rate reflecting the VAT compliance work.

Cross-border positioning analysis (when configurations warrant). Supply-chain analysis for configurations with re-exports, imports, EU-VAT interaction, or mixed clienteles. Standalone analytical engagement with written summary. May result in voluntary registration recommendation, positioning adjustment recommendations, or "configuration is fine as-is" outcome.

For VAT-related configuration changes — turnover approaching threshold, new client touchpoints affecting zero-rating, structure changes affecting positioning — we surface these proactively and recommend the appropriate engagement type.

When VAT registration is in scope#

Mandatory registration triggered by threshold crossing. When your domestic-supply turnover crosses 100,000 GEL within any 12-month rolling period, registration becomes mandatory and must be completed within the regulatory window. We monitor approach to the threshold for active accounting clients and surface the trigger 1–2 months ahead so registration can run cleanly without missed deadlines. Configurations actively crossing the threshold typically include: LLCs with Georgian-domestic clients reaching scale, FIZ resident companies with Georgian-domestic supply touchpoints, IE+SBS configurations crossing 500,000 GEL turnover (which triggers SBS regime change anyway and often coincides with VAT-registration scaling).

Voluntary registration for input-VAT recovery. Below-threshold configurations sometimes register voluntarily to recover input VAT on Georgian operational expenses. The trade-off math:

• Voluntary registration adds: monthly VAT returns, careful supply-chain tracking, additional compliance overhead.
• Voluntary registration unlocks: input VAT recovery on Georgian operational expenses (typically 18% of Georgian-supplier invoices).
• Net benefit when: input VAT volume is high enough to outweigh the compliance overhead. Typically high-input configurations with substantial Georgian operational spend (Georgian office lease, Georgian-paid contractors, Georgian SaaS tools at scale).
• Net cost when: input VAT volume is low (typical foreign-client freelancer with minimal Georgian operational expenses). Most foreign-founder configurations don't benefit from voluntary registration.

Cross-border configurations needing positioning analysis. Multi-jurisdiction supply chains require careful VAT positioning even when registration isn't otherwise triggered. Configurations needing analysis include: foreign-client services flowing through Georgian intermediary structures, Georgian re-export of imported goods, Georgian operations with EU-VAT-customer touchpoints, mixed Georgian-and-foreign clientele. For these configurations, the VAT positioning is part of the broader structure analysis even when registration itself isn't the trigger.

When VAT registration isn't in scope (the more common case)#

For most foreign-founder configurations we work with, VAT registration isn't in scope. The honest framing:

Foreign-client freelancers and IT contractors under IE+SBS. The IE+SBS regime caps at 500,000 GEL annual turnover and serves foreign clients via export zero-rating. Domestic-supply turnover for these configurations is typically near zero — the Georgian-side activity is the IE itself, not Georgian-domestic supply. VAT registration is genuinely not needed for typical configurations.

LLC operations serving foreign clients without Georgian-domestic supply. Virtual Zone LLCs, International Company status holders, and other foreign-client LLC configurations operating purely as exporters of services to non-Georgian clients sit cleanly outside VAT. The zero-rating applies to the exports, and there's no domestic-supply turnover to push the configuration toward registration.

Configurations approaching but not crossing the threshold. Configurations approaching 100,000 GEL domestic-supply turnover — whether LLCs scaling Georgian-domestic client base, FIZ resident companies with Georgian touchpoints, or other border-state configurations — need active monitoring rather than registration. We monitor ahead of the trigger and plan registration timing around configuration changes that might cross or remain below.

Below-threshold configurations without input-VAT-recovery upside. Voluntary registration adds compliance overhead in exchange for input VAT recovery. Configurations without significant Georgian operational expenses (typical foreign-client freelancer with foreign banking, foreign suppliers, foreign SaaS) don't have input VAT to recover, so voluntary registration adds cost without offsetting benefit.

We confirm honestly whether VAT is in scope for your configuration. For most foreign-founder readers, the consultation concludes "your configuration sits outside VAT, no registration needed."

Why Happy Georgia#

Independent advisory. No tied tax software promotion, no commission for steering you toward unnecessary VAT registration. Voluntary VAT registration is genuinely beneficial for some configurations and genuinely unnecessary overhead for others; we recommend honestly based on the input-VAT-recovery trade-off math, not based on engagement-fee maximisation. The independence shows up in what we don't sell.

Foreign clients only. Our entire practice is foreigners running Georgian companies. We've worked through the VAT positioning conversation for many configurations — Berlin freelancer's IE+SBS confirmed under threshold via foreign-client zero-rating, Tel Aviv founder's VZ LLC operating cleanly outside VAT despite substantial revenue (foreign-services exports zero-rate), Singapore investor's IC status holding with Georgian-domestic touchpoints requiring active threshold monitoring, London-based founder's mixed Georgian-and-foreign clientele requiring cross-border positioning analysis.

Fixed pricing, no tourist tax. VAT positioning consultation pricing on request when standalone (the dominant engagement for under-threshold configurations); VAT registration setup quoted separately when registration applies; ongoing monthly VAT returns bundled with monthly accounting at an additional monthly rate reflecting VAT compliance work; cross-border positioning analysis quoted on engagement scope. We quote in EUR, we honor the quote, no surprises later.

Trusted by clients across Western Europe, Israel, the UK, Singapore, and beyond.

Frequently asked questions#

What's the actual VAT registration threshold for foreigners running Georgian companies?#

100,000 GEL annual turnover within any 12-month rolling period — but on domestic-supply turnover specifically, not total turnover. Foreign-services exports typically don't count toward the threshold (zero-rated). For typical foreign-client configurations, this means most foreign founders never approach the threshold despite substantial total revenue.

Why doesn't my foreign-client revenue count toward the VAT threshold?#

Services exported to non-Georgian clients are typically zero-rated under Georgian VAT rules — taxable supplies at 0% rate, with input VAT recovery available when registered. Zero-rated supplies count as VAT-supplies but at 0% effective tax. The threshold mechanics specifically focus on domestic-supply turnover that would generate VAT liability if registered; zero-rated exports don't generate liability and don't push configurations toward mandatory registration in practice.

Should I voluntarily register for VAT to recover input VAT?#

Depends on input VAT volume. Configurations with substantial Georgian operational expenses (lease, Georgian-paid employees, Georgian SaaS tools, Georgian-supplier invoices) generate input VAT that voluntary registration can recover. Configurations with minimal Georgian operational expenses (typical foreign-client freelancer with foreign banking and foreign suppliers) don't have meaningful input VAT to recover, so voluntary registration adds compliance overhead without offsetting benefit. The trade-off math depends on your specific Georgian operational spend.

What happens when I cross the threshold?#

Mandatory registration within the regulatory window. We monitor approach to the threshold for active monthly accounting clients and surface the trigger 1–2 months ahead so registration can run cleanly without missed deadlines. Once registered, monthly VAT returns become part of the ongoing operational rhythm; we handle the returns via delegated rs.ge access alongside the standard monthly accounting filings.

How do monthly VAT returns work?#

Monthly VAT returns are filed on the regulatory deadline (typically 15th of the month following the reporting month) via delegated rs.ge access. The return covers VAT-supplies (including zero-rated exports), input VAT (recoverable on Georgian operational expenses), and the net VAT position for the period. For configurations with substantial transaction volume, transaction-level reporting may apply. We handle the filing on your behalf as authorised rs.ge agent.

What if my supply chain involves re-exports or EU customers?#

Cross-border configurations need careful VAT positioning. Re-exports of imported goods, services to EU customers, mixed Georgian-and-foreign clientele each have specific VAT mechanics that affect both registration triggers and ongoing return filing. We work through the supply-chain analysis during consultation and align the positioning before registration or compliance setup. Mispositioned cross-border configurations can result in registration in error, zero-rating misapplication, or incorrect input VAT recovery — getting the positioning right at the start matters.

How does VAT interact with the IE+SBS 1% turnover tax?#

VAT and IE+SBS turnover tax are separate compliance layers. The 1% IE+SBS turnover tax operates regardless of VAT status (under SBS, the 1% applies to turnover; the SBS regime caps at 500,000 GEL annual turnover before triggering broader regime considerations). VAT registration adds the VAT compliance layer on top — for IE+SBS holders crossing the VAT threshold (rare given the foreign-client zero-rating dominance), monthly VAT returns run alongside the SBS turnover tax filings.

What about VAT for VZ LLC operations?#

Virtual Zone LLC operations export qualifying IT services to foreign clients with the 0% Corporate Income Tax benefit, and the foreign-services exports typically zero-rate for VAT purposes. Most VZ LLC configurations operate cleanly outside VAT registration despite substantial revenue — the entire revenue base is zero-rated exports. Configurations with any Georgian-domestic supply touchpoints need careful analysis to confirm VAT positioning.

Can I de-register from VAT if my configuration changes?#

Yes, when the configuration no longer requires registration. De-registration applies when domestic-supply turnover falls below the threshold for sustained periods (typically requiring evidence of below-threshold operation across 12 months) or when business activity ceases. The de-registration mechanic involves Revenue Service application and confirmation; we handle de-registration as part of the engagement when configuration changes warrant.

What about the EU-VAT One-Stop Shop and digital services?#

Configurations with EU-customer digital services may have EU-VAT obligations independent of Georgian VAT — the EU's place-of-supply rules for B2C digital services to EU consumers create EU-VAT registration considerations regardless of Georgian VAT status. We surface EU-VAT considerations during cross-border positioning analysis but EU-VAT compliance itself runs through EU-side specialists; we coordinate where the cross-jurisdictional position matters.

Ready to assess?#

A free consultation maps your Georgian configuration against the VAT registration framework — under threshold (the dominant case for foreign-client configurations), approaching threshold (active monitoring), already over threshold (registration setup), or voluntary registration (input-VAT-recovery trade-off analysis). For most foreign-founder configurations, the consultation outcome is "your configuration sits outside VAT, no registration needed" and that's the entire VAT engagement. For configurations needing registration or cross-border positioning analysis, we handle the engagement end-to-end. Most consultations resolve the VAT positioning question in 30 minutes.