Small Business Status & VAT Thresholds in Georgia

For sole proprietors (see the article on individual entrepreneurs), Georgia offers simplified tax regimes that make running a small business noticeably cheaper.

Small business status

Below a certain annual turnover threshold (check the current figure with the Revenue Service — it's periodically revised), a sole proprietor can get small-business status and pay just 1% of turnover instead of progressive income tax. Some activities (consulting, brokerage) are excluded from this regime.

Micro business

With very low turnover and no employees, micro-business status is available — full exemption from income tax.

VAT threshold

VAT registration is mandatory once turnover exceeds GEL 100,000 in any rolling 12-month period — regardless of small-business status. The standard VAT rate is 18%.

Practical tip

Track turnover monthly — missing the VAT registration deadline after crossing the threshold triggers penalties.