Amendments to the tax legislation of Georgia

Amendments to the tax legislation of Georgia, January 2025

Changes in the orders of the Minister of Finance of Georgia

1.3 A new measure has been defined to prevent VAT evasion on January 27, 2025, an amendment to the Order of the Minister of Finance N996 “On Tax Administration” was published and entered into force immediately upon publication.

The amendment concerns Article 56 of the Order.3, Article 11, which defines administrative measures against VAT evasion, including the use of false documents, as well as non-commodity operations or fictitious transactions.

As you know, and as defined in the wording of Order No. 996 prior to the amendment, the tax authority is authorized to suspend the right of a person registered as a VAT payer to use tax invoices and tax documents (to issue/confirm and/or receive credit electronically) and/or to refuse to issue the aforementioned documents in physical form to the person:

1. a) when signs of VAT evasion, including the use of a false document, as well as non-commodity transactions or fictitious transactions are detected. In this case, the case materials will be forwarded to the relevant investigative body;
2. b) at the request of the relevant investigative body (within the criminal case under its proceedings);
3. c) based on the order of the head of the revenue service and according to the methodology approved by him. As a result of the changes made, in the event of any of the circumstances mentioned in subparagraphs “a”-“b” above, the tax authority is entitled to also Suspend the right to use customs declarations for the purpose of obtaining VAT credits.