Dispatching is close to an ideal fit for the Georgian Individual Entrepreneur (IE). The work is done remotely, the client is almost always a company abroad, and the income arrives as regular service fees — which is exactly the shape the 1% regime was designed for.

Does this describe you?

You find loads, negotiate rates, handle paperwork and keep drivers moving — for carriers based in the US, Canada or the EU. You are not employed by them; you invoice them for a dispatch service, often a percentage of the load or a flat weekly fee. You work from a laptop, so where you are registered is a choice rather than a constraint.

Why the 1% rate applies

A Georgian IE that obtains Small Business Status pays 1% on turnover — not on profit, and not the standard personal income rate — for annual turnover up to 500,000 GEL. For a dispatcher, turnover is simply what the carriers pay you. There is no need to build a cost base or argue about deductions: you report what came in and pay one percent of it.

The B2B point that matters most

This is the part dispatchers most often get wrong, and it works in your favour. When your client is a foreign company rather than a private individual, the service is treated under standard B2B place-of-supply rules: the supply happens where your customer is, which is outside Georgia. Two consequences:

• No Georgian VAT on those invoices.
• Those sales do not count toward the 100,000 GEL VAT-registration threshold — so growing past it does not drag you into VAT registration.

In practice this means a dispatcher billing carriers abroad can scale toward the 500,000 GEL ceiling while still paying 1%, without a VAT problem appearing on the way. Keep your contracts and invoices clearly B2B — issued to the carrier company, not to a person — because that is what the treatment rests on.

What it looks like month to month

You invoice each carrier for the period, receive payment to your Georgian business account, and declare turnover monthly. Because the tax is on turnover, bookkeeping is light — the main discipline is making sure every payment is traceable to an invoice, and that money from clients lands in the business account rather than a personal one.

What to watch

• Crossing 500,000 GEL — above that ceiling the small-business treatment no longer applies to the excess; plan ahead if you are scaling a dispatch team.
• Billing private individuals — a different place-of-supply analysis applies, and such sales can count toward the VAT threshold.

Frequently Asked Questions

Do I pay VAT if I dispatch for a US carrier?

No. A service supplied to a foreign company is outside the scope of Georgian VAT under B2B place-of-supply rules, and those sales are excluded from the 100,000 GEL VAT-registration threshold.

Is dispatching eligible for the 1% Small Business Status?

Dispatch is a normal service activity and generally fits the regime. Some activities are excluded from small-business status, so it is worth confirming your exact setup before registering.