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New Tax Guidelines in Georgia: Discussions between the MOF, GRS, and Leading Georgian Tax Professionals

New Tax Guidelines in Georgia: Discussions between the MOF, GRS, and Leading Georgian Tax Professionals

Our managing partner and esteemed tax consultant, Gela Barshovi, played a role in reviewing new tax guidelines. He was deeply honored to have been invited by the Ministry of Finance of Georgia (MOF) and the Georgian Revenue Service (GRS) to participate in crucial tax policy discussions. We are grateful for the recognition of our expertise and the opportunity to contribute to the development of Georgia’s tax policy. 

USAID Georgia organized the three-day event, which took place at Lopota Lake Resort from April 5 to 7. 

The MOF also invited representatives of the Big Five accounting firms and members of several associations for the discussion. 

These collaborative meetings between the MOF, GRS, and private-sector tax professionals are a testament to our shared commitment to increase transparency in the tax law policy-making process. By considering the opinions of diverse, experienced tax professionals, we can collectively work towards avoiding errors and ambiguity in the law that could later be used against taxpayers by the GRS.

Taxation in Georgia: Public Tax Rulings to be Published Soon 

The MOF’s public tax rulings explain to taxpayers and tax inspectors of the GRS the correct interpretation of the existing tax law provisions. Simply put, a public tax ruling serves as guidance for taxpayers and tax inspectors on interpreting existing provisions within the Georgian tax code rather than constituting a new law. 

The following draft of public tax rulings was deliberated upon during the three-day event:

  • VAT taxation of the exchange transaction of goods/services (i.e., bartering), (Time when VAT obligation arises in bartering for each participant, based on what transaction value should VAT be calculated).
  • Provision of which type of supplementary/auxiliary services/goods (e.g., food, transportation) provided by schools/universities to students also which type of services/goods directly related to the primary educational services offered by such institutions are VAT exempt. 
  • VAT taxation of any operations carried out under customer loyalty schemes, which involves the accumulation of points by consumers and the exchange of said points for goods or services (i.e., should VAT apply to the provision of goods in exchange for the accumulated points?);
  • Several other ambiguous paragraphs in the Georgian tax code. 

Experienced and Knowledgeable Tax Professional in Georgia

Gela Barshovi, our managing partner, tax consultant and graduate of master program of international tax law at Vienna University of Economic and Business (WU) is an expert in Georgian and international taxation. He has 14 years of professional experience in taxation, including working as a leading tax inspector at the Georgian Revenue Service, as an in-house Transfer Pricing consultant at a multinational company in Leipzig, Germany, and as a Transfer Pricing consultant at an international accounting firm in Vienna, Austria. 

Since 2019, Gela has leveraged his experience and expertise to provide tax consultations and comprehensive tax-related support to all TPsolution LLC’s clients.

Gela is personally involved in the following tax-related projects:

  • Tax analysis, including providing written and verbal tax consultations;
  • Tax audit, 
  • Preparation of Transfer Pricing documentation;
  • Tax dispute resolution; 
  • Representing clients during tax inspections;

Taxation Services in Georgia

TPsolution LLC and Gela Barshovi are actively involved in Georgia’s tax law-making and interpretation processes to stay up-to-date and provide our clients with the best possible advice. 

We have rich experience and deep knowledge of Georgian tax law and familiarity with existing practices and approaches established by the Georgia Revenue Service, which are as essential as knowing the tax law itself. 

We possess the expertise to deliver top-tier tax consultations to our clients while consistently safeguarding their interests in communications with the GRS and MOF. 

Georgian accounting and consulting firm TPsolution always seeks to achieve the highest possible quality of tax, accounting, and business support services and promises clients our total commitment and full confidentiality.