Georgian tax code to be in compliance with EU VAT directive

Georgian Ministry of Finance is working on amendments to the tax code to bring it closer to the value added tax (VAT) directive of the European Union (EU), announces the Ministry of Finance.

The goal is to introduce the best EU practices in Georgia and promote cooperation between entrepreneurs working in Georgia and the EU, says the ministry.

To achieve this, the following steps will be made:

• Internal procedures will be developed for applying judgments and interpretations of the European Court of Justice in practice;
• To support the process of establishing Georgia as a centre of international services by introducing EU practice and increasing the range of benefits associated with international shipping;
• Georgian and the EU VAT directives to be in compliance in order to improve the investment environment in Georgia along with the introduction of VAT return rules for the EU-based businesses;
• All existing norms are maintained to simplify the VAT administration process;

Before the bill is sent to the parliament of Georgia the Ministry of Finance is going to held meetings with local business society to discuss the planned amendments with them.

The first meeting was held yesterday which was attended by over 50 companies.