Registration for VAT in Georgia becomes mandatory once a business's taxable turnover exceeds GEL 100,000 within any continuous 12-month period. Many companies wait for a formal notice before registering, which is a mistake — the obligation is triggered automatically the moment the threshold is crossed, and late registration can mean back-dated liability plus penalties.
Once registered, the standard rate is 18%, charged on the supply of most goods and services within Georgia. Input VAT — the tax paid on legitimate business purchases — can generally be credited against output VAT owed, but only when supported by a correctly issued electronic invoice through the Revenue Service's system. Missing or malformed invoices are the single most common reason input credits get rejected during an audit.
Monthly VAT returns are due by the 15th of the following month, and the reporting period cannot be changed retroactively once a return has been filed. Businesses that export goods or provide services to foreign clients should also review Georgia's zero-rating rules carefully, since qualifying exports can recover VAT paid on inputs without charging it on the corresponding sale — a benefit many exporters underuse simply because they haven't structured their invoicing to claim it.