Invoicing and Tax regulation in Georgia

Invoicing Regulation in Georgia

In Georgia, organization conducting business-to-business (B2B), business-to-government (B2G), or business-to-consumer (B2C) operations are subject to invoicing regulations laid down in the Tax Code of Georgia. The issuance of invoices is a legal requirement for every taxable transaction, with specific details needed such as date, VAT identification number of the supplier, description of goods, etc. Furthermore, all invoices must be stored for at least six years.

Real-time Reporting/Fiscalization in Georgia

Georgia has been progressively embracing digital technologies in taxation. According to the law, business entities in Georgia need to ensure fiscal compliance by sending real-time reporting of the executed transactions to the Revenue Service. In Georgia, the use of cash registers that can send real-time transaction data is a mandatory requirement for businesses, as it constitutes the core of the country's fiscalization policy.

E-invoicing in Georgia

E-invoicing isn't specifically legislated in Georgia hence it is not mandatory, however, the government encouraged the use of electronic invoices to enhance tax transparency and compliance. It's noteworthy to point that the electronic invoice should fulfill the same criteria as the paper invoice. The advantage is that e-invoices can be stored digitally, simplifying record management.

VAT/GST/Tax Compliance in Georgia

For VAT/GST and tax compliance, Georgia has a standard VAT rate of 18%. If companies or organizations supply goods or services, they have to register for VAT if their annual turnover exceeds GEL 100,000. For B2B, B2C, and B2G operations, complying with this VAT regulation is mandatory. Moreover, compliance with direct and indirect tax obligations is crucial in Georgia to avoid penalties.

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