If a company exceeds the applicable turnover threshold of GEL 100,000 within any rolling twelve calendar months, the turnover that takes it over the threshold is already subject to VAT. The date of that turnover determines when the tax treatment begins and must match the turnover statement. Submitting the application later does not move the tax liability to the processing or confirmation date. In the case of special triggers, registration may be required before the first taxable transaction. For reorganizations involving a registered party and certain contributions in kind, there is also a deadline of no more than ten days after the relevant event. Once the application has been processed, the company should check its recorded VAT payer status and effective date in its Revenue Service tax account. From that date, taxable transactions, tax invoices, input VAT, and accounting codes must be handled in accordance with the VAT rules. The tax period covers one calendar month; the return and payment are generally due by the 15th day of the following month. Effective VAT registration results in the loss of Micro Business status. Price lists, contracts, invoicing software, and accounting therefore need to be updated for the confirmed date or the date required by law.
When a Company's VAT Registration Takes Effect in Georgia
For voluntary VAT registration in Georgia, the status generally takes effect on the date the application is submitted. For compulsory registration, by contrast, the effective date is determined by the statutory trigger and is not postponed by a late application.
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