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Author Topic: Issues Related to Starting a Business in Georgia  (Read 583 times)

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Online msmob

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Issues Related to Starting a Business in Georgia
« on: January 25, 2020, 07:27:39 AM »
Correction, Maxx


The 18% tax charged on any imported goods over 300GEL is VAT - Value added Tax


There might be an import duty added - rate depending on Country of origin and the code of the goods.


Example :

If I import from China - electronics - I pay ZIP duty and 18% VAT - but if/ when I re-export to ( say) the EU - I can claim the VAT back


IF you are registered for VAT - you, too, can claim the VAT back against any VAT ( sales tax ) - less any VAT on sales you might charge .. You MUST register for VAT registration if you expect to or actually hit the 100, 000 Gel turnover mark or pay more than 100,000 GEL for items in a calendar year.


You forgot Property Tax 1%

and

Vehicle import duty 0.5 %

I'm NOT being 'smart' I'm just ahead of you re doing business in GE

You'll find this page useful:

http://taxsummaries.pwc.com/ID/Georgia-Corporate-Other-taxes

« Last Edit: January 25, 2020, 02:10:15 PM by msmob »
We'll be back, EU ..and as a certain 'gentleman' couldn't accept my offer to 'bury the hatchet' .. Don't trust a clueless Californian 'business owner' who cannot even quote me, honestly ..

Online Faux Pas

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Issues Related to Starting a Business in Georgia
« Reply #1 on: January 25, 2020, 08:39:58 AM »
Correction, Maxx


The 18% tax charged on any imported goods over 300GEL is VAT - Value added Tax


There might be an import duty added - rate depending on Country of origin and the code of the goods


Example

If I import from China - electronics - Ipay ZIP duty and 18% VAT - but if/ when I re-export to ( say) the EU - I can claim the VAT back


IF you are registered for VAT - you, too, can claim the VAT back against any VAT ( sales tax ) - less any VAT on sales you might charge .. You MUST register for VAT registration if you expect to or actually hit the 100, 00 Gel turnover mark or pay more than 100,000 GEL for items in a calendar year


You forgot Property Tax 1%

and

Vehicle import duty 0.5 %

I'm NOT being 'smart' I'm just ahead of you re doing business in GE

You'll find this page useful:

http://taxsummaries.pwc.com/ID/Georgia-Corporate-Other-taxes

Maxx always remember; whatever Moobs says, do exactly the opposite

Online msmob

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Issues Related to Starting a Business in Georgia
« Reply #2 on: January 25, 2020, 12:09:25 PM »
Maxx always remember; whatever Moobs says, do exactly the opposite

indeed - ignore PWC ... they know nothing .. listen to Mr Mistake .. He's been to Georgia and formed a biz and imported stuff - like me .. Oh wait a sec .. he hasn't ..   :deadhorse

We'll be back, EU ..and as a certain 'gentleman' couldn't accept my offer to 'bury the hatchet' .. Don't trust a clueless Californian 'business owner' who cannot even quote me, honestly ..

Offline Boethius

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Issues Related to Starting a Business in Georgia
« Reply #3 on: January 25, 2020, 02:05:39 PM »
Maxx always remember; whatever Moobs says, do exactly the opposite


He's right this time, although the property tax would be assessed against the owner of the property, not a leaseholder, unless its recovery is incorporated into the lease.  The VAT is the big one here.


This post was composed without the aid of google.
Mon pays ce n'est pas un pays, c'est l'hiver.

Online Faux Pas

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Issues Related to Starting a Business in Georgia
« Reply #4 on: January 25, 2020, 02:41:22 PM »
indeed - ignore PWC ... they know nothing .. listen to Mr Mistake .. He's been to Georgia and formed a biz and imported stuff - like me .. Oh wait a sec .. he hasn't ..   :deadhorse

As per usual you spout off like you know what you're talking about when you clearly don't. Your mumbling tripe actually pertains very little to his overall needs or picture. Just another instance of you attempting to inject negativity into any situation you can find. Maxx isn't importing electronics, he's attempting to sell tacos and pico. I haven't heard him say dick about buying property or importing a vehicle, have you?


He's right this time, although the property tax would be assessed against the owner of the property, not a leaseholder, unless its recovery is incorporated into the lease.  The VAT is the big one here.


This post was composed without the aid of google.

You always think he's right even when you know he's wrong  :ROFL:

Offline Boethius

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Issues Related to Starting a Business in Georgia
« Reply #5 on: January 25, 2020, 02:44:38 PM »
No, I don't always agree with moby.  But he is right this time.  VAT is imposed on imported goods.  VAT works exactly the same way GST does in Canada.  Maxx can recoup that VAT if he is registered.  I assume Maxx already knows this, although part of moby's point was, there is a sales tax (VAT), although it is neutral to businesses, affecting consumers only.

In most of the world, registration for value added tax is compulsory after a certain number in sales (in Canada, it's $30,000).  Moreover, moby's post conformed with the PricewaternhouseCoopers link (although I don't think the property or vehicle taxes referenced are relevant to Maxx).  Are you suggesting you know better than PWC?

This post was composed without the aid of google.


« Last Edit: January 25, 2020, 02:55:04 PM by Boethius »
Mon pays ce n'est pas un pays, c'est l'hiver.

Online Faux Pas

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Issues Related to Starting a Business in Georgia
« Reply #6 on: January 25, 2020, 02:53:32 PM »
No, I don't always agree with moby.  But he is right this time.  VAT is imposed on imported goods.  VAT works exactly the same way GST does in Canada.  Maxx can recoup that VAT if he is registered.  In most of the world, registration is compulsory after a certain value in sales (in Canada, it's $30,000).  Moreover, moby's post conformed with the PricewaternhouseCoopers link (although I don't think the property or vehicle taxes referenced are relevant to Maxx).  Are you suggesting you know better than PWC?


This post was composed without the aid of google.

That appears to be a deflection counsellor.  A typical Moobs tactic, how sweet. Did I mention I disagreed with PWC  or Georgia's tax rate?

If Maxx needs to pay 18% on his jalapenos or corn I'm pretty sure he's considered that at this point without needing Moobs expert tax advice.

Offline Boethius

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Issues Related to Starting a Business in Georgia
« Reply #7 on: January 25, 2020, 02:59:23 PM »
No deflection on my part.  You quoted moby's post, and then advised Maxx to ignore moby's "advice", which was just a summary of what was linked on the PWC page.  Your advice to ignore that information is misguided.

Maxx's post stated there is no sales tax.  That is incorrect, and that is what moby was reacting to (at least, the way I read it).  There is a sales tax in Georgia (VAT).  It's just that, unlike in the US, that sales tax is fully recoverable by businesses, provided the business is registered (i.e., has a VAT number).  If the business is not registered for VAT, it will pay that tax for goods it purchases as well with no offsetting credit.


This post was composed without the aid of google.
« Last Edit: January 25, 2020, 03:10:13 PM by Boethius »
Mon pays ce n'est pas un pays, c'est l'hiver.

Online BillyB

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Issues Related to Starting a Business in Georgia
« Reply #8 on: January 25, 2020, 03:23:49 PM »
From the government center and our Ukrainian restauranteur.


There are 5 types of taxes here. Income tax, import tax, employee tax, rent tax and 1% tax on cash flow.


Maxx, there could be more costs. Don't know if the business environment in Georgia adopted some of Russia's but you may need some cash to bribe officials to get permits. You may need some money to pay off cops. You may be forced to get a "roof", mafia protection against the mafia(themselves) who'd destroy your restaurant if you don't pay up. I wonder if they'd take payment in tacos and burritos?
There are people that will pass info about you and your family. Do not share info about yourself or share photos as they can search for you on the internet and distribute what they found since they are allowed to participate here.

Online msmob

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Issues Related to Starting a Business in Georgia
« Reply #9 on: January 25, 2020, 04:42:10 PM »
Silly BillyB

Maxx and I have been posting for long enough for even the least attentive poster to 'get' that corruption at govt level is nowhere near comparable to FSU countries you have been to....
We'll be back, EU ..and as a certain 'gentleman' couldn't accept my offer to 'bury the hatchet' .. Don't trust a clueless Californian 'business owner' who cannot even quote me, honestly ..

Online BillyB

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Issues Related to Starting a Business in Georgia
« Reply #10 on: January 25, 2020, 07:56:16 PM »
corruption at govt level is nowhere near comparable to FSU countries you have been to....


If you know so much about Georgia, why didn't you comment on corruption level of cops and the level of mafia influence?
There are people that will pass info about you and your family. Do not share info about yourself or share photos as they can search for you on the internet and distribute what they found since they are allowed to participate here.

Online Maxx2

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Re: Issues Related to Starting a Business in Georgia
« Reply #11 on: January 25, 2020, 10:04:38 PM »



I just woke up.


I've only posted what I've observed and experienced. I buy an item in a store and the price is what is marked. When it comes to a 1% tax, nothing or practically nothing applies.
« Last Edit: January 26, 2020, 12:11:29 AM by Maxx2 »

Online Maxx2

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Re: Issues Related to Starting a Business in Georgia
« Reply #12 on: January 26, 2020, 12:10:05 AM »
If you know so much about Georgia, why didn't you comment on corruption level of cops and the level of mafia influence?


Billy, I  know the question has been asked of Moby.


From what I've seen and heard there is no corruption or mafia. Saakashvili a former president really cleaned house. He fired all the police, imprisoned the corrupt and chased out of the country those with criminal records. The Belarusian woman who works for me told me that doing business in Belarus was very difficult because of corruption, mafia and a dictatorial government. The same can be said of all Slavic countries.  This is the reason why so many people from Slavic countries are moving here.
« Last Edit: January 26, 2020, 12:13:38 AM by Maxx2 »

Online msmob

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Re: Issues Related to Starting a Business in Georgia
« Reply #13 on: January 26, 2020, 02:23:58 AM »
Maxx

You might want to ask about MicroBusiness status if you believe your purchases or turnover will exceed 45,000 GEL

I do not know if VAT is charged on meals in a restaurant in GE.

It is common that 'takeaways/ to go' are charged at a lesser zero rate in many EU nations.

Georgia SEEMS to align itself to those 'norms'.

This is stuff you can ask an accountant or the GE finance ministry.

You might get tax back on purchases you made.


We'll be back, EU ..and as a certain 'gentleman' couldn't accept my offer to 'bury the hatchet' .. Don't trust a clueless Californian 'business owner' who cannot even quote me, honestly ..

Online Maxx2

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Re: Issues Related to Starting a Business in Georgia
« Reply #14 on: January 26, 2020, 08:41:49 AM »
Maxx

You might want to ask about MicroBusiness status if you believe your purchases or turnover will exceed 45,000 GEL

I do not know if VAT is charged on meals in a restaurant in GE.

It is common that 'takeaways/ to go' are charged at a lesser zero rate in many EU nations.

Georgia SEEMS to align itself to those 'norms'.

This is stuff you can ask an accountant or the GE finance ministry.

You might get tax back on purchases you made.


Thanks for the info. I'll check it out and post what I find out on my business thread. I think most business people here shoot from the hip. That tends to be my style to. I was self employed from 1990 to 2015, 25 years. I've found if you believe something can be accomplished, generally it is.


I said on my business thread that I wouldn't need an account. That most businesses here don't use them. But for me I need one because I have to file a tax return with the Internal Revenue Service. Expats have till June 15th 2021 to do this.


I am getting the key tomorrow from my business landlord.
« Last Edit: January 26, 2020, 08:51:16 AM by Maxx2 »

Online msmob

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Re: Issues Related to Starting a Business in Georgia
« Reply #15 on: January 27, 2020, 02:28:49 AM »


I am getting the key tomorrow from my business landlord.

I admire your trying something and good luck
We'll be back, EU ..and as a certain 'gentleman' couldn't accept my offer to 'bury the hatchet' .. Don't trust a clueless Californian 'business owner' who cannot even quote me, honestly ..

 

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