VAT Portal on Digital Services - What Non-Resident Companies Need to Know About This Service
AT Portal on Digital Services (available at rs.ge)
The VAT Portal on Digital Services is used by foreign (non-resident) individuals and companies who provide digital/electronic services to natural persons (non-entrepreneurs) located in Georgia.
Who is this portal for, and who is obliged to pay VAT in Georgia?
The portal is intended only for foreign taxpayers/companies that:
Are not established in Georgia
Do not have a permanent residence or fixed establishment in Georgia
Provide digital services that are consumed by natural persons in Georgia who are not registered VAT payers.
What services are covered by this obligation?
Electronic services delivered via the internet or electronic networks, whose nature makes the supply essentially automated and requires minimal human intervention. Examples: videos, music, games, or similar content provided through downloading, streaming, or other technologies. This also includes texts, magazines, newspapers, and books created for such purposes.
Telecommunication services, related to the transmission, broadcasting, or reception of signals, words, images, sounds, or any type of information via wired, radio, optical, or other electromagnetic systems. This includes granting or assigning rights to use capacity for such transmission, broadcasting, or reception, and providing access to global information networks.
Broadcasting services, which cover audio and audiovisual content such as radio or television programs supplied to the general public via communication networks by a media service provider, under its editorial responsibility, for simultaneous listening or viewing, based on a program schedule.
What is the purpose of the portal?
The portal aims to:
Simplify VAT registration for non-residents
Enable VAT declaration and payment on digital services provided in Georgia
Ensure taxation of services supplied to natural persons
Important: The portal does not apply to the sale of goods only to digital services.
When is registration mandatory?
There is no minimum turnover threshold-registration is mandatory from the very first transaction.