Georgia to implement reform on VAT returns in 2018
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Georgia’s economic team is working on a new reform that will further improve the country’s tax legislation and will result in additional surplus capital for the country.
Within the reform a special system will be created wherein entrepreneurs will not have any additional bureaucracy-related challenges. Thanks to the system, entrepreneurs will be able to pay VAT returns in 5-7 business days by filling out an electronic application.
As a result of the implementation of this reform, in the next few years, an additional 600 million GEL will be available in the private sector, which will be an important stimulus for business development’, said Georgia’s Finance Minister Mamuka Bakhtadze, who spoke in front of the hearing of several parliamentary committees today, prior to tomorrow’s vote of confidence from parliament for the country’s renewed cabinet.
Bakhtadze stated that the timely and simple return of VAT surplus without any bureaucracy-related challenges is "especially important” for small and medium businesses.
The Parliament of Georgia approved a new, simplified and liberal Tax Code in 2016, however the country’s economic team continues to further modify the tax legislation. The amendments in the law are created to align Georgia’s tax system with the Estonian Taxation Model.
Following the Estonian taxation model, VAT returns are covered if there is a surplus of VAT inputs over outputs.
Bakhtadze promised the reform on VAT returns will be implemented in Georgia "starting from next year”.
Georgia’s economic team is working on modifying the country’s tax legislation, with the main goal of improving the investment climate, attracting more investors and additional capital to the country.
Georgia’s economic team is working on modifying the country’s Tax and Criminal Codes, with the main goal to decriminalise economic crime and liberalise the tax code in order to further develop the Georgian economy.
The International Monetary Fund (IMF) is pleased by Georgia’s progress in tax policy and revenue administration and has announced a new, three-year, large-scale technical assistance program for the country.
Today the new Tax Code Law has come into play in Georgia in order to improve investment climate and help the country attract additional capital.
The recent major reshuffle, in which several ministries will be merged and others – replaced, aims at making the Cabinet of Ministers more flexible, reduce bureaucracy and save administrative resources, Georgian Prime Minister Giorgi Kvirikashvili said today.
Georgia’s Parliament is discussing whether or not approve the renewed Cabinet today. An extraordinary parliamentary meeting started at 12 pm. The discussion will be followed by a vote where lawmakers will or will not give confidence to the renewed Cabinet of Ministers.
Georgian Parliament Members (MPs) have approved and given their vote of confidence to the Prime Minister and updated list of cabinet members. The vote of confidence was given with 103 votes in favour and 17 against after a long discussion at parliament.
"2018 will be a more dynamic year for Georgia in terms of economic growth,” said Georgia's Prime Minister Giorgi Kvirikashvili at the last Government Meeting of 2017, while summarising the achievements his government made this year and setting tasks for 2018.
Georgia praised for ease of compliance with tax law
Georgia ranks 22nd out of 190 countries according to the World Bank and PwC Paying Taxes 2018 report, which compares countries by the ease of complying with tax law.
Georgia is further improving its tax legislation by introducing an automatic system of value-added tax (VAT) returns, which is expected to result in additional surplus capital for the country.
The Government of Georgia is launching a second wave of small business assistance efforts building on the successful programs such as ‘Produce in Georgia’, agriculture programs like ‘Plant the Future’ and others. Georgia’s Finance Minister Mamuka Bakhtadze initiated a new legislative package at today’s government meeting that concerns tax breaks for small businesses.
The Georgian Ministry of Finance is introducing new tax breaks to Georgia’s business society and especially to those who are based in the regions of the country.
The Government of Georgia is introducing three new tax initiatives that aim to support businesses in Georgia, improve the business environment and increase the share of small and medium sized business in the country’s economy. Recently, Georgia’s Finance Ministry also introduced new tax breaks which will apply to small businesses in Georgia.
"A tax regime for small businesses, which is unique throughout the world, is already in force”, says Prime Minister of Georgia Mamuka Bakhtadze. Per the new tax initiative that came into play on July 1, the turnover tax for small entrepreneurs will be reduced five times. This far-reaching reform applies to almost 100 percent of individual entrepreneurs.
Georgian Prime Minister Mamuka Bakhtadze stated today that the government will present a new, European style, customs code in the next week.The PM said that the new code will ensure the electronic offer of all customs services for businesses.
The new code is in full compliance with high, European standards. It has been drafted by Georgian and EU experts. The new code will provide stimulus for new investments from Europe in Georgia and help the integration of Georgian businesses on the European market, Finance Minister Ivane Machavariani told businessperson in the Poti economic zone, in western Georgia, today.
Buildings on which construction began before 2008 and which are still not completed may be made exempt from paying value added tax until 2026, announced Georgian Prime Minister Giorgi Gakharia at a government meeting earlier today.
From now on, about 150,000 companies in Georgia will be able to use automatic systems to claim their surplus VAT refund generated on the basis of VAT declaration, announces Georgian Prime Minister Giorgi Gakharia.
A total of ₾1.8 billion ($0.66bln) has been returned to taxpayers in Georgia in the first 10 months of 2022 as part of the VAT return reform, the country’s revenue service announced on Friday.