During the month of January 2025 Amendments to the tax legislation of Georgia

Kreston Georgia continues to review tax law changes and updates. This time, we offer an overview of the legislative news introduced in the month of January 2025.

Table of Contents

1. Changes in the orders of the Minister of Finance of Georgia

1.1 The rules for filling out income and profit tax returns have changed.

1.2 New form of the petroleum products accounting journal

1.3 New measure to prevent VAT evasion has been introduced

1. Changes in the orders of the Minister of Finance of Georgia

1.1. The rules for filling out income and profit tax returns have changed.

On February 2025, 10, an amendment was published in the Order of the Minister of Finance N996 “On Tax Administration”. The amendment concerns the procedure for filling out the monthly income and profit tax declaration for a person who represents a person operating a slot machine salon, an organizer of gambling games in a systematic-electronic form and/or a totalizator game in a systematic-electronic form.

As you know, an amendment to the Tax Code of Georgia came into effect on January 2025, 1, based on which, by the operator of a slot machine parlor and/or the organizer of gambling in a systematic-electronic form, Earned income/profit will be taxed at 20% instead of 15% before the change. and by the mentioned persons, from the profits belonging to the year 2025 and subsequent periods, Dividends issued will be taxed at the source of payment at a rate of 0% instead of 5% under the law applicable before the amendment.

It was in order to bring monthly income and profit tax declarations into line with the aforementioned amendment to the Tax Code that Article 996 of Order No. 33 of the Minister of Finance was amended.2and 401In the relevant fields of the articles and declarations, instead of 15%, the tax rate was set to 20%.

Change The implementation extended to January 2025 and subsequent reporting periods. Submitted declarations.

For detailed information about the change, see the link:

https://matsne.gov.ge/ka/document/view/6409985?publication=0

1.2. New form of the petroleum products accounting journal

On January 2025, 31, an amendment to the Order of the Minister of Finance No. 996 “On Tax Administration” was published and entered into force immediately upon publication. The amendment concerns the journals for recording the supply of petroleum products..

According to the change, In the case of retail supply of petroleum products, if there are two sales prices for one item, the person is obliged to keep a new daily journal of retail sales of petroleum products No. III-17.1 In accordance with the appendix. It is worth noting that this amendment does not apply to the case of a single selling price for one item during retail supply, and in this case, the person shall still maintain the accounting journal in accordance with Appendix No. III-17, as it was defined before the amendment.

The new form of the journal allows the taxpayer to enter two different sales prices and corresponding discounts (if any) on the same date. For this purpose, columns 9;10;12;13;19 of the appendix have 2-2 lines, in which the current indicators are indicated in accordance with the column “Type of service when dispensing petroleum products” (whether the petroleum product is dispensed with self-service or without self-service).

It is worth noting that the new annex defines A journal can only be in physical form.

Appendix No. III-17​1: Daily accounting journal for retail sales of petroleum products in the event of two sales prices for one item.

For detailed information about the change, see the link:

https://matsne.gov.ge/ka/document/view/6396695?publication=0#DOCUMENT:1;

1.3. A new measure has been defined to prevent VAT evasion

On January 2025, 27, an amendment to the Order of the Minister of Finance N996 “On Tax Administration” was published and entered into force immediately upon publication. The amendment concerns Article 56 of the Order.3Article 11, which defines administrative measures against VAT evasion, including the use of false documents, as well as non-commodity operations or fictitious transactions.

As you know, and as defined in the wording of Order No. 996 prior to the amendment, the tax authority is authorized to suspend the right of a person registered as a VAT payer to use tax invoices and tax documents (to issue/confirm and/or receive credit electronically) and/or to refuse to issue the aforementioned documents in physical form to the person:

a) when signs of VAT evasion, including the use of a false document, as well as non-commodity transactions or fictitious transactions are detected. In this case, the case materials will be forwarded to the relevant investigative body;

b) at the request of the relevant investigative body (within the criminal case under its proceedings);

c) based on the order of the head of the revenue service and according to the methodology approved by him.

As a result of the changes made, in the event of any of the circumstances mentioned in subparagraphs "a"-"b" above, the tax authority is entitled to also Suspend the right to use customs declarations for the purpose of obtaining VAT credits.

For detailed information about the change, see the link:

https://matsne.gov.ge/ka/document/view/6391749?publication=0

Creston Georgia Ltd

managing partner                                                             Davit Papiashvili

Head of Tax Audit Department                     Chabukiani from Rusu