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August 3, 2021

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


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