Georgian taxpayers receive $0.6 bln as VAT return between January-October
Last year, ₾1.9 billion ($0.70bln) was returned to business owners, with the figure standing at ₾1 billion ($0.37bln) in 2020. Photo: Nino Alavidze/agenda.ge
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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.
The reform involves returning the surplus generated from VAT payments through a “new and simplified” system upon delivery of VAT declarations, the body said.
First launched in 2018 - when refunds were only made manually - the system was later upgraded to a semi-automatic mode, before it was completely automated starting in 2020.
It enables entrepreneurs to receive VAT returns in five to seven business days after they fill out a digital application without additional bureaucratic steps.
Last year, ₾1.9 billion ($0.70bln) was returned to business owners, with the figure standing at ₾1 billion ($0.37bln) in 2020.
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.
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.
As a result of the implementation of VAT return reform launched in 2018, about 520 million GEL will be returned to Georgia’s private sector, said Georgian Prime Minister Mamuka Bakhtadze while answering the question of a citizen last night on a Facebook live address.
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.
The parliament of Georgia has discussed amendments to the tax code set to be assigned to financial institutions in the country to provide information on common reporting standard-established procedures and financial accounting to the revenue service, the parliament announced on Wednesday.