How to return VAT in Georgia to a foreign entrepreneur

If you are doing business in Georgia, you should know about the huge advantage that is provided for all entrepreneurs in this country. It's about refund of overpaid tax value added tax for all organizations engaged in export. With such a business organization, companies sometimes have to pay VAT twice. The Georgian government has solved the issue cardinally, how exactly – find out from this article.

When and to whom VAT is refunded in Georgia

To understand the tax legislation of Georgia, it is necessary to study in detail all legal norms and laws. ConcerningVAT in Georgia there have been no fundamental changes, it has been paid at the rate of 18% since 2007.

Some goods and services are not subject to VAT, more about this in the section “Banks and Finance” in the Madloba catalog.

In 2021, Georgia adopted a law on automatic refund of overpaid VAT. That is, you will no longer have to submit additional applications. The Tax Service of Georgia will transfer the VAT refund on its own.

Overpaid VAT is refunded to all companies. It is enough to confirm and explain why the overpayment occurred. After checking the tax on the accuracy of the information, the money will be credited to company account.

How VAT is refunded in Georgia

To get back the overpaid value added tax, confirm that your company is engaged in exporting. For this purpose, documents confirming mutual settlements with companies from other countries will be suitable.

Previously, it was necessary to fill out an application at the tax office, now everything happens automatically. But if necessary, the application form is available on the website of the Revenue Service of Georgia.

Refunds of other taxes in Georgia

It will not be possible to return other taxes, except VAT, in Georgia. The law does not provide for this. But it is possible to redistribute profits and taxes. It is also available to correct errors when filling out the declaration. And if you have paid more taxes than you should, then the surplus will be returned to the company's account, or will go to pay future taxes.

Doing business in Georgia is very profitable – ideal conditions are created here, including for foreign citizens. Preferential tax conditions, grants and special government programs allow you to conduct and develop a successful business.

For more information on how to become a company owner in this country, read the pages of the Madloba catalog. The experts of our team try to make informative reviews and selections to make it easier for you to understand all the nuances of legislation.