Changes to Public Decision in Georgia: Changes to VAT Taxation Rules for Barter Transactions for Construction Companies
On May 19, 2026, an amendment to Public Decision No. 195 of the Minister of Finance of Georgia was published, which concerns the taxation of VAT on the supply of real estate within the framework of barter transactions. The amendment is especially important for the development sector, construction companies and businesses that use real estate or mixed (cash and non-cash) compensation in exchange for land.
The amendment directly applies to so-called “mixed barters”, where compensation is made both in the transferred areas and in an additional monetary component, thereby effectively correcting the previously existing flaw in the preliminary ruling, which concerns the case of a negative taxable base when the amount paid is subtracted from the market price of the land plot received by construction companies.
New Universal Payment System Planned for Georgian Businesses
