The chart of accounts should record output tax, deductible input VAT, non-deductible VAT, import VAT and reverse-charge VAT separately at a minimum. Additional tax codes distinguish standard-rated supplies, exemptions with or without the right to deduct input VAT, and transactions outside the Georgian VAT system. Internal records link sales and purchase registers with tax invoices, customs documents, reverse-charge transactions and the accounting records. Each business transaction needs a clear assignment to a tax period, revenue category, amount and supporting evidence. The VAT period in Georgia is one calendar month. Returns and payments are generally due by the 15th day of the following month. The internal tax calendar should set earlier deadlines for recording supporting documents, reconciling accounts, review and approval. Responsibility for recording, tax classification, review, filing and payment must be assigned to specific people. Primary and backup contacts should be designated for deadlines, access to the RS.ge tax account and staff absences. Regular reconciliations of supporting documents, subsidiary registers, accounting records and filed returns help identify missing or duplicate transactions in time.
Preparing internal VAT processes before starting a business in Georgia
Before starting a business in Georgia, accounting codes, VAT records, deadline monitoring and staff responsibilities should be set up. This should make it possible to assign every business transaction to a tax period, revenue category, tax base and documented tax treatment.
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