Value Added Tax is one of the most misunderstood parts of doing business in Georgia — partly because many newcomers assume that Georgia’s famously low taxes mean VAT can be ignored. It cannot. VAT has its own registration rules, its own threshold, and its own monthly filing rhythm, and crossing the threshold without noticing is one of the more common compliance mistakes for growing businesses. This guide explains who must register, when registration is triggered, how the reverse-charge mechanism works, what is exempt or zero-rated, and how filing works. As tax rules can change, treat the figures here as accurate as of 2026 and verify the details with the Revenue Service (rs.ge) or your accountant.

The standard rate: 18%

Georgia applies a standard VAT rate of 18% on most supplies of goods and services and on most imports. This is the headline number to remember: once you are a registered VAT payer, you generally add 18% to your taxable sales, and you can usually reclaim the VAT you paid on your own business purchases (input VAT). The net of these two — output VAT charged minus input VAT incurred — is what you settle with the budget each month.

Who must register, and when

The most important VAT rule in Georgia is the registration threshold. As of 2026, a person carrying out economic activity must register as a VAT payer once their taxable turnover exceeds 100,000 GEL in any continuous 12-month period. The key word is continuous: this is a rolling 12-month window, not the calendar year. You watch your cumulative taxable turnover across any rolling 12 months, and the moment it passes 100,000 GEL, the registration obligation is triggered.

Registration is not something to put off. The rule generally requires you to apply for VAT-payer status within a very short window — commonly cited as no later than two business days — from the day the taxable transaction that pushes you over 100,000 GEL takes place. Missing that window can create back-dated VAT liabilities, so businesses approaching the threshold should plan registration in advance rather than react after the fact. Confirm the exact timing with the Revenue Service (rs.ge).

You can also register voluntarily before reaching the threshold. This sometimes makes sense if your customers are themselves VAT payers (who can reclaim the VAT you charge) or if you incur significant input VAT you would like to recover.

The threshold trap when you grow

A point that catches out many individual entrepreneurs: the 100,000 GEL VAT threshold and the small-business turnover cap are different numbers serving different purposes. The 100k VAT threshold often hits well before the higher small-business cap, which means a successful sole trader can become liable to register for VAT while still comfortably within small-business status. If you are scaling up, this is one of the practical triggers for reviewing your structure — see our guide on the IE-to-LLC transition, where we explain why the 100k VAT threshold often hits before the 500k small-business cap.

Reverse-charge VAT on non-resident services

Reverse-charge VAT is the rule most often overlooked, because it can apply even to businesses that are not otherwise registered for VAT. When a Georgian recipient buys services from a non-resident supplier (think foreign software, consulting, marketing or other cross-border services treated as supplied in Georgia), the obligation to account for VAT shifts to the Georgian recipient. In effect, you self-assess 18% on the value of that imported service and report it.

For a fully registered VAT payer, reverse-charge VAT is often broadly neutral, because the same amount can typically be claimed as input VAT in the same period. For a business that is not registered, however, reverse-charge VAT can be a real cost and a real filing obligation. If you regularly pay foreign suppliers for services, this is an area to check carefully with your accountant.

Exemptions and zero-rating

Not every supply carries 18%. Georgian VAT law provides for exemptions and for zero-rating, and it is important not to confuse the two:

• Zero-rated supplies (0%). Exports of goods from Georgia are generally taxed at a zero rate. Critically, a zero-rated supply is still a taxable supply — so the exporter charges 0% but can usually still recover input VAT on related purchases. This is favourable for export-oriented businesses.
• Exempt supplies. Certain categories of supply are exempt from VAT. Some exemptions come with the right to deduct input VAT and some without — the distinction matters for what you can reclaim. The specific list of exemptions is set out in the Tax Code and can change.

Because the categories are technical and the right to recover input VAT varies, do not assume a supply is exempt or zero-rated without checking. Verify the treatment of your specific goods or services with the Revenue Service (rs.ge) or an accountant.

Filing and payment

Once registered, VAT in Georgia is a monthly obligation. The reporting period is the calendar month, and the return and any payment are generally due by the 15th of the following month. That puts VAT on the same anchor date as several other monthly taxes, which makes it straightforward to fold into a single monthly compliance routine. Registered businesses also issue tax invoices for their taxable supplies, and the input/output VAT records underpin the monthly return. Confirm current filing dates with the Revenue Service (rs.ge).

Putting it together

For most businesses in Georgia, VAT compliance comes down to four questions: have I crossed the 100,000 GEL rolling threshold (or should I register voluntarily); do I buy services from non-residents that trigger reverse charge; are any of my supplies exempt or zero-rated; and am I filing the monthly return on time? Get those four right and VAT becomes routine. If you are setting up and want this handled correctly from day one, our team can advise during registering your company and then provide ongoing VAT registration & filing help.

Disclaimer: This article is general information, not tax or legal advice. VAT rules, rates and thresholds in Georgia can change. The figures here are accurate as of 2026 to the best of our knowledge — always verify current rules with the Revenue Service (rs.ge) or a qualified accountant before acting.

Would you rather not manage VAT registration, thresholds and monthly returns yourself? Our accounting and VAT-compliance service in Georgia handles your VAT registration, filings and reporting on time, every month.