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  • BDO Tax & Legal Newsletter / 2019 No.2

BDO Tax & Legal Newsletter / 2019 No.2

19 June 2019

Amendment to the Law


According to the law N4616-II (29 May 2019) by the president of Georgia, amendments were made to the Georgian Tax Code articles defining taxation by excise tax. According to the amendment calculation of excise defined for hybrid right-hand-drive cars from 0 to 6 years has been changed. In particular, according to the edition before the amendment, excise rates for these cars was subject to decrease. According to the amendment such tax relief shall now be applicable only for left-hand-drive hybrid cars. For the right-hand-drive hybrid cars tax relief is canceled.

In addition, excise tax exemption is abolished for right-hand-drive electric vehicles under the National Commodity Nomenclature of Foreign Economic Activities Code 8703.

The Amendment came into force on 1 June 2019.

Amendment to the Order

Exemption from VAT of Supply to Diplomatic missions 

By Decree N121 (25.04.2019) of the Minister of Finance of Georgia, an amendment was made to the Minister’s Decree N996 (31.12.2010) “Tax Administration”. The amendment concerns the VAT exemption of the goods/services supply intended for the personal use of a diplomatic mission and equal representations. 

By the regulations in force prior to the Amendment, for the purchase of goods/services with the value more than GEL100, issuing a respective VAT invoice was a must. By the amendment this rule is canceled. The liability to issue VAT invoice exists only in case the buyer requires so.

The amendment came into force on 1 May 2019.

The amendment to the article on tax accrual

By Decree N149 (22.05.2019) of the Minister of Finance of Georgia, an amendment was made to the Minister’s Decree N996 (31.12.2010) “Tax Administration”.

According to the amendment for the LEPLs that are controlled by the state or are created based on the  "Local Government Code", also for non-profit entities that are established by the state, state agencies or self-government bodies the new rule was defined: balance of the surplus existed on personal tax card of such entities by 31 December of each year for which the time of limitation is expired shall be written-off.

The amendment came into force from 23 May 2019.

Amendment to the rule on payment of import duties

By Decree N162 (31.05.2019) of the Minister of Finance of Georgia, an amendment was made to the Minister’s Decree N290 (26.07.2012) “on the approval of instruction of movement and clearance of goods through Georgian customs territory”. According to the amendment 5-day period (instead 30 days) of payment shall be already applicable for the goods owned by member on “Golden List”, also for the pre-declared goods (instead of 15 days).

However, for the “Golden List” members import of wheat shall still be ruled by 45-day period and for simplified customs declaration - 30-day period.

For excisable goods the amendment is applicable from 13 June 2019, for the rest of goods from 3 July 2019.