Tax News Update    Email this document    Print this document  

August 3, 2021
2021-1459

Georgia postpones VAT on foreign suppliers of digital services to 1 October 2021

As part of recent Value Added Tax (VAT) reform in Georgia, foreign suppliers of digital services to non-entrepreneurial natural persons (consumers) in the territory of Georgia will be required to assess and pay VAT to the state budget of Georgia.

On 28 July 2021, amendments were published that postpone the entry into force of the rules from 1 July 2021 to 1 October 2021. The amendments also introduce the following changes:

  • Foreign suppliers will be able to settle their tax liabilities in US dollars, Euro or Georgian Lari.
  • Foreign suppliers will be required to maintain their accounting records for a period of three years from the end of the year when the taxable service was rendered.

For further details of the proposed VAT rules for digital services provided by foreign suppliers, see EY Global Tax Alert, Georgia imposes VAT on foreign suppliers of digital services, dated 20 July 2021.

_________________________________________

For additional information with respect to this Alert, please contact the following:

EY LLC (Georgia), Tbilisi

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement