Georgia – Digital Services
From October 1, 2021, a taxable person, who is not established or has no habitual residence in Georgia, or has no fixed establishment in Georgia engaged in the supply of digital services in Georgia, must pay VAT.
Accordingly, any non-established foreign company supplying electronic services to private individual who are not taxpayers of VAT must register with the Georgian tax authority.
Standard VAT rate is 18%.
The following digital services are subject to VAT:
- Electronically supplied services delivered over the Internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology.
- Telecommunications services mean services relating to the transmission, emission, or reception of signals, words, images, and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including the related transfer or assignment of the right to use capacity for such transmission, emission, or reception, with the inclusion of the provision of access to global information networks.
- Broadcasting services include services consisting of audio and audio-visual content, which are provided via communications networks by and under the editorial responsibility of a media service provider (for example, radio or television programs).
The fiscal period is the calendar quarter:
VAT returns and VAT payments are due by the 20th day of the quarter following the reporting period. VAT can be paid in Georgian currency, USD and EURO.
The above information was kindly provided by Mark Prior (Russia). For more information, please contact Olga Maksimova at: email@example.com.