Thursday, August 8, 2019
Georgia's Ministry of Finance has launched a new consultation on value-added tax amendments that are intended to align Georgia's value-added tax law with EU VAT law provisions.
The Government's proposals were set out at a recent workshop, attended by representatives from more than 50 companies.
According to the Ministry, the Government hopes that by adopting European best practices in the area of VAT, it will reduce the compliance burden on Georgian entrepreneurs doing business in the EU and vice versa. The Government is also seeking to simplify the process for EU businesses to obtain a VAT refund, to encourage investment.
Georgia has also said that will adopt the judgments of the European Court of Justice in VAT matters and its place of supply rules.
In sum, the Government believes that transposing EU VAT rules will reduce disputes and lower the administrative burden on Georgian companies.