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Georgia VAT on foreign digital services

Georgia has implemented Value Added Tax obligation on non-resident providers of digital or electronic, broadcast and telecommunications services from 1 October 2021. It was delayed from 1 July 2021.  This follows the example of the European Union and OECD recommendations. In addition to digital services, providers of telecommunications (voice and data) and broadcast services are also including in the VAT obligations. There is no VAT registration threshold for selling digital goods into Georgia.

The current VAT rate in Georgia VAT rate is 18%. Our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.

The Georgina Revenue Service is expected providers to complete a simplified registration process. Once completed, the provider may complete simplified reporting with no ability to recover any local VAT. Supplies to VAT registered resident

What digital services are liable to Georgian VAT?

The Revenue Service has highlighted that income from the following electronic services delivered over the internet or similar electronic network to consumer will be subject to VAT:

  • telecoms services, voice and data
  • broadcast services, TV and radio
  • videos, music,
  • games or other analogues, through download, streaming or other technology,
  •  texts,
  • magazines, newspapers and books.

Determining the place of supply for VAT

The new rules require the provider to determine if the consumer is resident in Georgia, and the place of supply is within the jurisdiction of Georgian VAT net. Example of customer provided evidence to use for this determination include:

  • Home address
  • Bank account details
  • Country code on telephone number
  • IP address

VAT returns requirements

Once VAT registered via a simple online form, non-residents must complete VAT returns each quarter. These are due with the Revenue Service by 20th of the following month. The corresponding VAT liability is not due until the last day of the following month. VAT may be settled in local GEL currency, USD or Euro’s.

Europe VAT on digital services

Country (click for details) Rate Date Threshold Comments
EU 27 member states 17% to 27% Jan 2015 €10k EU residents; Nil for non-EU
Albania 20% Jan 2015 Nil
Andorra 4.5% Jan 2015 Nil
Belarus 20% Jan 2018 Nil
Georgia 18% Oct 2021 Nil
Iceland 24% Nov 2011 ISK 2 million
Kosovo 18 Sep 2015 Nil
Moldova 20% Apr 2020 Nil
Norway 25% Jul 2011 NOK 50,000
Russia 16.67% Jan 2017 Nil B2C & B2B
Serbia 20% Apr 2017
Switzerland 7.7% Jan 2010 CHF 100,000 on global income
Turkey 18% Jan 2018 Nil
Ukraine 20% Jan 2022 UAH 1m
UK 20% Jan 2015 Nil

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