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12.2. VAT on the Supply of Services by Non-Residents

The supply of services by a non-resident through a place of business in Georgia is subject to VAT in the country.

Non-residents without a place of business and providing services to registered business in Georgia (B2B) are subject to VAT on business activities performed in Georgia. Non-residents are required to appoint a resident representative who will be jointly responsible for the payment of the VAT due and for the fulfillment of VAT obligations. Failing to appoint a representative results into the resident registered VAT customer becoming liable for the payment of VAT by application of a reverse charge mechanism.

Digital Supplies

The supply of digital services by a non-resident without a place of business in Georgia to any VAT-registered payer (B2B) in Georgia is subject to VAT on a reverse charge basis and the service recipient is liable for the payment of VAT.

Effective 1 October 2021 (extended from 1 July 2021), a non-resident without a place of business in Georgia supplying digital services to a non-taxable person (B2C) is required to register and pay VAT at the standard rate. Such non-resident is required to file VAT returns on a quarterly basis within 20 days of the month following each quarter and make tax payment by the end of the month following each quarter. Digital services include telecommunication services, electronically supplied services, radio or television broadcasting services.

Telecommunication services means services relating to the transmission, emission or reception of signals, words, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including the related transfer or assignment of the right to use capacity for such transmission, emission or reception, with the provision of access to global information networks.

Electronically supplied services means services provided through the internet or any electronic network, the delivery of which is substantially automated, involves minimal human intervention and its delivery is impossible without the use of information technology. It also includes:

  • Digital product delivery, including software support and delivery of an updated version;
  • Website delivery;
  • Web hosting, remote maintenance of software and hardware;
  • Software and related updates;
  • Providing images, text and information to ensure access to the database;
  • Supply of music, films and games (including gambling);
  • Broadcasting and delivery of political, cultural, artistic, sports, scientific and entertainment programs;
  • Provision of distance learning; and
  • Other specified services.

Broadcasting services include services consisting of audio and audiovisual content, such as radio or television programmes which are provided to the general public via communications networks by and under the editorial responsibility of a media service provider, for simultaneous listening or viewing, on the basis of a programme schedule.