During the month of March 2024 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 March 2024.
Table of Contents
1. Amendments to the law of Georgia
1.1. Canceling the possibility of debt restructuring
2. Changes in the orders of the Minister of Finance of Georgia
2.1. The obligation to submit information by the lessee of trade facilities/places on the territory of the fair was defined
2.2. Commodity codes were specified in accordance with "SES ESN".
3. Changes in the orders of the head of the revenue service
3.1. The non-qualified VAT taxpayer is given the opportunity to confirm the invoice received for the audited period.
3.2. The marginal norms of natural loss have been changed for individual goods
1. Changes in the law of Georgia
1.1. Canceling the possibility of debt restructuring
On March 2024, 14, an amendment to the Tax Code of Georgia (hereinafter, "Tax Code") was published. Part of the change came into effect immediately after publication, while the full change will come into effect on April 2024, 2.
The implemented change is of a technical nature and is due to the change implemented in the Law of Georgia "On Restructuring of Tax Debts and State Loans" and therefore aims to bring the Tax Code of Georgia into compliance with it.
Based on the change, the articles referring to the Law of Georgia "On Restructuring of Tax Debts and State Loans" to regulate the issue of tax debt restructuring were removed from the Civil Code. As a result, it will no longer be possible to postpone the debt up to 60 months using the debt restructuring, and the issues related to the administration of the debt tax debt will from now on be regulated only by the norms of the Tax Code of Georgia.
For detailed information about the change, see the link:
https://matsne.gov.ge/ka/document/view/6119254?publication=0
2. Changes in the orders of the Minister of Finance of Georgia
2.1. The obligation to submit information by the lessee of trade facilities/places on the territory of the fair was determined
On March 2024, 15, the amendment to the "Tax Administration" instruction approved by Order No. 2024 of the Minister of Finance was published and entered into force on April 1, 996. The change concerns the lessees of stationary trading facilities and non-stationary trading places intended for the sale of goods on the territory of the fair. In this regard, a new 39 was added to the instruction5Article 112 was added to Article 69.
As you know, 26 of the Civil Code2According to the article, a person who organizes a market (trade) in Georgia (except for organizing a market with agricultural products) is obliged to apply to the tax authority status of the fair organizer by requesting an assignment. Organization of the fair Yes, it is the leasing of a trading facility and/or a trading place located in the territory of the market owned/owned by a person and/or a group of persons. market is a plot of land on which stationary trading facilities and non-stationary trading sites or only non-stationary trading sites (at least 10 non-stationary trading sites) are located, which are intended for the sale of goods.
Based on the changes implemented, from April 2024, 1, the person who owns/owns the market and who leases (including sublease) a stationary trading facility and/or a non-stationary trading place intended for the sale of goods on the territory of this market, is obliged to electronically submit information to the tax authority about those persons (including sub-tenants) carrying out economic activities in this territory, for which a stationary trading facility and/or a non-stationary trading location is leased/subleased for a period of more than one calendar day.
The person shall submit the information provided for in the first paragraph of this article to the tax authority no later than the 15th day of the month following the month in which the stationary trading facility and/or non-stationary trading place is leased in the territory of the fair, and in the case of a change in the composition of the persons performing economic activity in the territory of the fair (extension or termination of the contract) - no later than the relevant 15th of the month following the month of change. In addition, a person who leases a stationary trading facility and/or a non-stationary trading place in the territory of the market, and the said lease relationship was established before April 2024, 1, is obliged to comply with the new 39 of this instruction.5 The information stipulated in the article should be submitted to the tax authority no later than May 2024, 31.
The representative information defined in this article includes such information as:
a) name, identification number, legal form and legal address of the lessee;
b) trade name of the fair;
c) land cadastral code(s) and corresponding address(es);
d) number of stationary and non-stationary objects;
e) information about the lessee and sublessee, including: name, identification number, legal form, in the case of a natural person - information about citizenship;
f) type of activity of the lessee/sublessee;
g) area (sq.m) and type of leased/subleased facility;
h) Lease/sublease agreement number, date, amount in national currency, date of start, end, change and termination of the agreement;
i) other information determined by the order of the head of the revenue service.
In addition, in case of sub-leasing by the lessee/sub-lessee of the stationary shopping facility/non-stationary shopping place leased at the market (on the territory of the market), the lessee/sub-lessee is obliged, within 5 working days after sub-leasing, to notify the person specified in the first paragraph of this article, to the tax authority In order to submit the information provided for in the article.
For the violation of the obligation established by the amendment, the person will be held liable in accordance with the tax legislation of Georgia.
For detailed information about the change, see the link:
https://matsne.gov.ge/ka/document/view/6131849?publication=0
2.2. Commodity codes were specified in accordance with "SES ESN".
On March 2024, 27, an amendment to the "Tax Administration" instruction, approved by Order No. 996 of the Minister of Finance, was published and entered into force. The effect of the said change was extended to the legal relations arising from January 2024, 26. As a result of the change, new editions were formed in the 77th and 78th of the instruction1Paragraph 2 and 79 of Articles2Clause 8 of Articles
The purpose of the implemented change was to bring the mentioned articles into compliance with the new SES ESN. As you know, the new "National Commodity Nomenclature of Foreign Economic Activities (SES ESN)" approved by the Minister of Finance of Georgia entered into force on January 2024, 26, and the SES ESN approved by the Minister of Finance on November 2020, 18 was canceled.
Accordingly, in the above-mentioned articles of Order No. 996, commodity codes were changed and brought into compliance with the new SES ESN.
For detailed information about the change, see the link:
https://matsne.gov.ge/ka/document/view/6139366?publication=0
3. Changes in the orders of the head of the revenue service
3.1. The non-qualified VAT taxpayer is given the opportunity to confirm the invoice received for the audited period.
On March 2024, 26, an amendment to the order of the Head of the Revenue Service No. 2024 of February 3, 2022 was published and entered into force on January 16, 3751, which determines in certain cases the electronic tax report issued by the taxpayer for the tax invoice, tax document subscription/confirmation, and bill of lading subscription. The special rule of using the invoice.
As a result of the change, 8 was added to Article 41 The clause according to which, during the tax audit of a non-qualified VAT taxpayer or during the audited period, if the received (verifiable) tax invoice is identified, in which the period (month) of the specified taxable operation was covered by the tax audit, it is allowed, if the taxpayer submits a statement to the revenue service , which will be examined by the audit department, the taxpayer will be given the right to confirm the corresponding tax invoice.
As you know, before the amendment of the same order, only the rule of limiting the subscription of the invoice was regulated by the existing edition. In particular, the subscription of the invoice/tax document is limited to the reporting period or issue on which the tax authority has carried out a tax audit or charge. In such a situation, the issuance of a tax invoice/tax document is allowed only if the taxpayer submits an application to the Revenue Service and submits relevant arguments. which will be studied by the audit department and within 3 working days after the appropriate decision, the taxpayer will be given the opportunity to issue the relevant tax invoice/tax document, according to the procedure established by the Minister of Finance of Georgia.
Also, a new 8 was added to Article 61 The clause according to which the restrictions defined by this instruction do not apply based on the bill of lading, only to the electronic tax invoice issued for the operations specified in the said bill of lading, which was subscribed to the application to the revenue service for the operations to be carried out in the period after the issuance of the order "on confiscation of property" and positive results from them Based on receiving a response.
For detailed information about the change, see the link:
https://matsne.gov.ge/ka/document/view/6138658?publication=0
3.2. The marginal norms of natural loss have been changed for individual goods
-
- - On March 2024, 29, the amendment to the order of the Head of the Revenue Service No. 2019 of July 10, 22970 "On approval of natural loss norms for individual goods" was published and entered into force immediately after publication. In particular, Appendix No. 1, which presents the maximum marginal norms of natural loss for individual goods, was formed with a new edition.
For a detailed analysis, in the attached table we present a comparison of the maximum threshold norms with the old and new editions:
|
operations Name |
loss from weight %- In (old with the editorial office) |
loss from weight %- In (New with the editorial office) |
|
propyl და isopropyl alcohol |
||
|
Sess Esn Code: 2905 12 |
||
|
Railway shipments |
0.80 |
0.80 |
|
methyl alcohol |
||
|
Sess Esn Code: 2905 11 |
||
|
Railway shipments |
0.15 |
0.15 |
|
Paraxylol |
||
|
Sess Esn Code: 2902 43 |
||
|
Railway shipments |
0.30 |
0.30 |
|
pyrolytic Resin |
||
|
Sess Esn Code: 3911 90 990 00 |
||
|
Railway shipments |
1.00 |
1.00 |
|
vacuum Gasoil |
||
|
Sess Esn Code: 2710 19 310 00, 2710 19 350 00. |
||
|
Railway shipments |
0.60 |
0.60 |
|
save |
- |
0.56 |
|
gas condensate natural |
||
|
Sess Esn Code: 2709 00 100 |
||
|
Railway shipments |
0.75 |
0.75 |
|
oil gases liquefied Sess Esn Code: 2711 hydrocarbons Acyclic Sess Esn Code: 2901 |
||
|
Railway shipments |
0.90 |
0.90 |
|
save |
1.10 |
1.10 |
|
Methyl-Tret Butylethine Ether |
||
|
Sess Esn Code: 2909 19 90 |
||
|
Railway shipments |
- |
0.39 |
- On March 2024, 26, the amendment to the order of the Head of the Revenue Service No. 2018 dated August 6, 20839 "On approval of the norms of natural loss of crude oil and petroleum products" was signed and immediately after the signing came into force. In particular, Appendix No. 2, which presents the maximum marginal norms of natural loss for individual goods, was formed with a new edition. Also, in subsections "l" and "m" of Article 2, according to which "fuel oil" and "lubricating oil" are defined, the commodity codes were changed, approved by Order No. 2024 of January 26, 21 of the National Commodity Nomenclature of Foreign Economic Activities )" respectively.
For a detailed analysis, in the attached table we present a comparison of the maximum threshold norms with the old and new editions:
|
operations Name |
loss from weight %-In (old with the editorial office) |
loss from weight %-In (New with the editorial office) |
|
on gasoline |
||
|
Sess Esn Code: 2710 12 110 00; 2710 12 410 00, 2710 12 450 00, 2710 12 490 00. |
||
|
Sea shipments |
0.35 |
0.35 |
|
Rail shipments |
0.24 |
0.24 |
|
Motor shipments |
0.12 |
0.12 |
|
Reservoir storage (in an above ground reservoir 1 Except for storage for more than a month |
0.25 |
0.25 |
|
Storage in an above-ground reservoir 1 for more than a month |
0.35 |
0.35 |
|
raw on oil |
||
|
Sess Esn Code: 2709 00 900 00 |
||
|
Rail shipments |
0.04 |
0.04 |
|
save |
0.077 |
0.077 |
|
on diesel |
||
|
Sess Esn Code: 2710 19 430 00, 2710 19 460 00, 2710 19 470 00, 2710 19 480 00. |
||
|
Sea shipments |
0.35 |
0.35 |
|
Rail shipments |
0.1 |
0.1 |
|
Motor shipments |
0.05 |
0.05 |
|
Reservoir storage |
0.07 |
0.07 |
|
on oil |
||
|
Sess Esn Code: 2710 19 210 00, 2710 19 250 00. |
||
|
Sea shipments |
0.35 |
0.35 |
|
Rail shipments |
0.11 |
0.11 |
|
Motor shipments |
0.06 |
0.06 |
|
Reservoir storage |
0.1 |
0.1 |
|
on fuel oil |
||
|
Sess Esn Code: 2710 19 620 00, 2710 19 660 00, 2710 19 670 00. |
||
|
Rail shipments |
1.05 |
1.05 |
|
save |
- |
0.97 |
|
lubricant on oil |
||
|
Sess Esn Code: 2710 19 990 00 |
||
|
Rail shipments |
0.1 |
0.1 |
|
lubricant on oil |
||
|
Sess Esn Code: 2710 19 710 00 |
||
|
Rail shipments |
0.1 |
0.98 |
|
Benzene |
||
|
Sess Esn Code: 2902 20 000 00 |
||
|
Rail shipments |
0.24 |
0.24 |
- On March 2024, 26, the order "Approving the norms of natural loss of soy and sunflower meal" was signed, and immediately after the signing, it came into force, on the basis of which the maximum norms of the loss of the mentioned goods were determined, which is presented in the attached table. Storage loss also includes loss of transportation in any form within the country.
|
Surgery Name |
loss norm (%-In from mass) |
|
soybeans whey |
|
|
Ses ESN Code: 2304 |
|
|
save |
0.5 |
|
sunflower whey |
|
|
Ses ESN Code: 2306 |
|
|
save |
0.5 |
For detailed information about the change, see the link:
https://matsne.gov.ge/ka/document/view/6141896?publication=0
https://matsne.gov.ge/ka/document/view/6141928?publication=0
https://matsne.gov.ge/ka/document/view/6146941?publication=0
Creston Georgia Ltd
managing partner Davit Papiashvili
Head of Tax Audit Department Chabukiani from Rusu