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  • BDO Tax & Legal Newsletter / December 2021 No.8

BDO Tax & Legal Newsletter / December 2021 No.8

Mariam Khuskivadze / Manager, TAX


Amendment to the Order

Unqualified VAT payer

On 5 November 2021, Head of Revenue Service issued order №34331 making amendment to the order №25697 issued on 5 August 2021, "On Restriction of the Right of Taxpayers to issue/confirm Tax Invoices, Tax Documents and issue waybills in certain cases”. In particular, the amendment affected the part 5 of the above article, that stipulated the right of the tax authority to assign the status of qualified VAT payer to the unqualified VAT payers, or refuse to assign the status, including, in case of the request of taxpayer. According to the amendment the tax authority will study the case of assigning the status of qualified VAT payer to the Unqualified VAT payers only based on the application of the taxpayer.

According to the amendment, the article 51 was added to the order, that clarifies the basis for refusing to grant the status of a qualified VAT payer to an unqualified VAT payer:

  • Tax liabilities of the taxpayer
  • Tax liabilities of the founding partner of the taxpayer and/or tax liabilities of the enterprise founded by the founding partner of the taxpayer.

The article 52 has also been added to the mentioned order by the amendment, which defines that the tax authority determines the amount of tax liabilities and the equity participation of the founding partner in the enterprise, in case of which the person will not be assigned as a qualified VAT payer.

The amendment came into force from 2 November 2021.


Amendments in Methodical Reference

Determining a person's tax liabilities in particular cases

By the order №35390 from 12 November 2021 of the Head of Revenue Service the amendment was made to the order №22708 (08.07.2019) of the Head of Revenue Service on approval of methodical reference for determining the tax liabilities of a person in individual cases. In particular, the methodical reference on accounts payable has been added to the order №22708 of the Head of Revenue service, in accordance with Annex №8.

The methodical reference came into force from 13 November 2021.