Start with your actual work and income
Freelancers and IT companies selling services, software or digital products in Georgia and abroad.
- VAT registration threshold
- B2B versus B2C customer
- place of supply
- export and reverse-charge mechanics
- software product versus service
Start with the real income and activity
VAT cannot be answered from the invoice currency or client country alone. Registration threshold, taxable person, service classification, customer status and place-of-supply rules must be applied to the actual transaction.
Send a contract, sample invoice and a short explanation of where and how the work is performed. We use the real transaction—not a headline tax rate—to identify the registrations and rules that matter.
What to check for VAT for IT Services in Georgia
Freelancers and IT companies selling services, software or digital products in Georgia and abroad.
- VAT registration threshold
- B2B versus B2C customer
- place of supply
- export and reverse-charge mechanics
- software product versus service
Registration, source and VAT must be analysed separately
A headline rate is only the start. The legal form, status effective date, eligible activity, Georgian-source rules, customer location and VAT place of supply determine the result.
- 1% on turnover within the qualifying regime
- the Revenue Service application and certificate determine when the status applies; income received before the effective date is not automatically within the 1% regime
- 3% applies from the beginning of the month in which the threshold is exceeded through the end of that calendar year
- Monthly Small Business return and payment: by the 15th day of the following month.
What to send us first
Send a practical picture of how money is earned and documented. We will identify the registrations, tax analysis and operating documents that should be prepared professionally.
Send us first
- Current contracts and a plain-language service description
- Sample invoices and recent bank payment records
- Customer countries and whether clients are businesses or consumers
- Existing Georgian IE/company and tax records
- Approximate annual turnover and planned hiring
We prepare or coordinate
- Analyse activity, income source, status and VAT position
- Recommend the appropriate IE or company structure
- Prepare or coordinate the agreed registrations
- Provide invoice, bookkeeping, filing and threshold guidance
Obtained or confirmed later
- Public Registry and Revenue Service confirmations
- Bank KYC documents requested by the chosen bank
- Monthly source documents and tax returns
- Treaty or residency certificates if they become relevant
How the work usually proceeds
The exact order depends on the service and your documents. We confirm the steps and responsibilities before professional work begins.
- 01
map the actual service and client flow
- 02
separate immigration, work and tax questions
- 03
select the individual or company structure
- 04
complete registrations in the correct order
- 05
operate with monthly records, filings and threshold monitoring
How this may look in a real case
A consultant serving a foreign business and a Georgian consumer classifies the two supplies separately rather than assuming both are outside Georgian VAT.
What can slow the process down
We check these points at the beginning and flag gaps before filing, so you can correct them while there is still time.
- Small Business or another rate is used before the status effective date is confirmed.
- Contracts, invoices and payments describe different services or counterparties.
- Foreign-client income is classified without a Georgian-source and VAT review.
- Turnover, VAT and filing deadlines are not monitored from the first transaction.
A clear recommendation and a managed Georgian process
We translate your real contracts, income and customer flow into a practical registration and compliance plan.
ITResidency.ge is operated by ASSIO LEX & ASSOCIATES LLC, the Georgian legal and business-services provider for the engagement.
- IE or company comparison
- Income-source and status analysis
- VAT and cross-border review
- Registration and accounting handover
Frequently asked questions
Does the headline rate for vat for it services apply automatically?
No. Registration, status effective date, eligible activity, income source, customer location and VAT rules all matter. The actual contract and payment flow must be reviewed.
Do foreign customers make the income automatically tax-free?
No. Customer location alone does not decide Georgian-source income, Small Business treatment or VAT. The service, place of activity, legal relationship and treaty position may all be relevant.
Should I use an IE or a Georgian company?
That depends on liability, activity, revenue, clients, hiring, profit distribution, residence plans and the documentation burden. We compare the realistic options before registration.
What records should I keep?
Keep accurate contracts, invoices, acceptance records where relevant, bank statements, expense documents, tax registrations and monthly turnover records. The exact checklist follows the chosen structure.
Can ITResidency.ge coordinate registration and accounting?
Yes. We can assess the structure, complete the agreed registrations and hand the matter into practical invoicing, bookkeeping, payroll, VAT and filing support.
