Georgian VAT compliance, handled for you — from the registration test to monthly returns.

What you get#

Honest VAT positioning for your specific Georgian configuration. For many foreign-client configurations, registration isn't required yet — but that depends on which of your transactions are VAT-taxable in Georgia, which we check. 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 where your supplies are made for VAT purposes.

The structure has four other clean properties:

The GEL 100,000 test counts VAT-taxable transactions. Registration is required once VAT-taxable transactions exceed GEL 100,000 within 12 consecutive calendar months (Tax Code Art. 165(1)) — not total receipts, and not by customer nationality. Services to foreign customers are often supplied outside Georgia for VAT purposes (Art. 162¹), depending on the customer and the service, so which of your transactions count is something we check for your configuration.

Services to foreign clients often fall outside Georgian VAT. Many services to business customers abroad are supplied outside Georgia for VAT purposes, so no Georgian VAT applies — depending on the customer and the service. We confirm how this applies to your clients before you rely on it.

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 a misapplied place-of-supply position. 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 and which transactions are VAT-taxable in Georgia, 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, 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, and we give you the expected timing for your case.

Step 3 — Monthly VAT returns via delegated rs.ge access. Active VAT-registered taxpayers file monthly VAT returns. We track the applicable filing deadlines and file via delegated rs.ge access on time — including detailed transaction-level reporting where required, place-of-supply evidence for services supplied outside Georgia, 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 the place-of-supply 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 many 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. Where registration isn't required, the consultation confirms why and what to monitor, 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 applicable deadlines via delegated rs.ge access. Transaction-level reporting where required, place-of-supply evidence for services supplied outside Georgia, 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 where your supplies are made, 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 VAT-taxable transactions exceed GEL 100,000 within 12 consecutive calendar months, registration becomes mandatory and must be completed within the applicable deadline. 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, and growing IE+SBS businesses. For an IE, the SBS turnover limit is a separate test: above GEL 500,000 the SBS rate changes, loss of status follows its own rules, and VAT registration depends only on the VAT test.

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#

For many foreign-founder configurations, VAT registration isn't in scope yet. Where that is the case, it typically looks like this — and we confirm it for your transactions:

Foreign-client freelancers and IT contractors under IE+SBS. Where their services to foreign business clients are supplied outside Georgia for VAT purposes, those services carry no Georgian VAT. We confirm whether your services are supplied outside Georgia for VAT purposes and whether any of your transactions count toward the GEL 100,000 test.

LLC operations serving foreign clients without Georgian-domestic supply. Virtual Zone LLCs, International Company status holders and other foreign-client LLC configurations often export services to clients abroad. Where their services to foreign business clients are supplied outside Georgia for VAT purposes, those services carry no Georgian VAT; we confirm how the rest of your transactions count toward the registration test.

Configurations approaching but not crossing the threshold. Configurations approaching GEL 100,000 of VAT-taxable transactions — 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.

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. Every engagement starts from your own situation: where you live and pay tax, who your clients are, and what you plan to do in Georgia.

Fixed pricing, no tourist tax. VAT positioning consultation pricing on request when standalone (the usual 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.

Frequently asked questions#

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

Registration is required once VAT-taxable transactions exceed GEL 100,000 within 12 consecutive calendar months (Tax Code Art. 165(1)). Which of your transactions count depends on where your services are supplied for VAT purposes; services to foreign customers are often supplied outside Georgia, depending on the customer and the service. We check how your sales count.

Does my foreign-client revenue count toward the VAT threshold?#

It depends on where each service is supplied for VAT purposes. Under Tax Code Art. 162¹, services to business customers established abroad are generally supplied outside Georgia, while services to private individuals generally follow the supplier's establishment unless a specific rule applies. How such services count toward the GEL 100,000 test is something we assess for your configuration.

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?#

Registration becomes mandatory, within the applicable deadline. 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 via delegated rs.ge access; we track the applicable filing deadlines and file on time. The return covers your VAT-taxable supplies, 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, a misapplied place-of-supply position, 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. The SBS turnover limit of GEL 500,000 is its own test: above it the SBS rate changes, and loss of status follows separate rules. VAT registration depends only on the VAT test — for IE+SBS holders who cross it, 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. Their services to foreign business clients are often supplied outside Georgia for VAT purposes, depending on the customer and the service. We confirm how the company's transactions count toward the GEL 100,000 registration test, including any Georgian clients.

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

It can be possible when your situation changes. We assess whether the statutory conditions for de-registration are met and handle the required Revenue Service process where appropriate. Falling below the threshold does not by itself guarantee de-registration.

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, approaching threshold (active monitoring), already over threshold (registration setup), or voluntary registration (input-VAT-recovery trade-off analysis). Where registration isn't required, the consultation confirms it 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.