Tax Preparation for Self-Employment or Starting a Business in Georgia

After choosing the business form, determine who is responsible for tax matters and under which details the tax account will be maintained. Business registration, access to RS.ge, and possible special tax statuses are separate processes. For the electronic account, prepare the responsible individuals, secure login credentials, and reliable contact details. Micro Business Status and Small Business Status are available only to individuals engaged in business activities who meet the respective requirements. Micro Business Status generally has a limit of GEL 30,000 in gross income per calendar year; activity and employment conditions must also be checked. Under Small Business Status, qualifying turnover is generally taxed at 1 percent. Excluded activities, the GEL 500,000 turnover limit, and ongoing recordkeeping requirements remain relevant. A company cannot use these personal statuses. VAT must be assessed independently of these special statuses. Planned turnover must be classified by type, place of supply, and possible exemption. In addition to the GEL 100,000 turnover threshold, certain transactions may trigger a registration requirement. The tax rate, input VAT deduction, and timing of registration affect prices, invoices, and liquidity needs. Bookkeeping should be set up before the first business transaction. The document system, chart of accounts, invoicing, cash register, software, and reporting must be suited to the legal form, tax status, and VAT treatment. Personal and business transactions must be separated in a traceable way; for a company, the assets and liabilities of the separate legal entity are recorded. A tax start-up overview brings together expected turnover, types of tax, filing deadlines, responsibilities, and payment reserves. Foreign-currency transactions, cross-border services, start-up costs, and planned employment may also require additional assessment. Assumptions in the business plan should be consistent with tax and liquidity calculations. Before starting operations, access to RS.ge should be working, responsibilities should be clear, and the initial document, invoicing, and payment processes should have been tested. Changes in activity, turnover, or business form may require a new tax assessment.