Published by Bookkeeping.ge — Assio Lex and Associates LLC
Updated
International tax and business in Georgia
A tax audit or assessment needs a coordinated response: reliable accounting figures, organised evidence and a clear legal position. Bookkeeping.ge and the tax advisors and lawyers of Assio Lex and Associates LLC support businesses dealing with Georgian Revenue Service enquiries, tax assessments and disputes.
Discuss your tax assessment
Start with the document and the deadline
When a notice arrives, record what was served, when and how it was received, the tax periods involved and the response requested. Keep the original notice and attachments. An informal message from an accountant is not a substitute for the actual decision and proof of service.
The ordinary time limit to appeal a tax authority’s decision is 30 days after service. The particular document and route still need to be identified promptly. Send an assessment for review as soon as it is received, rather than waiting until all the underlying records have been reconstructed.
How we organise a tax audit response
| Stage | Work to organise | Client benefit |
|---|---|---|
| Notice review | Identify the document, issues, periods and response dates | A clear action list and accountable contact person |
| Accounting reconciliation | Connect ledgers, returns, invoices and bank records | A consistent explanation of the numbers |
| Evidence file | Index contracts, delivery records and correspondence by issue | Documents that can be found and explained quickly |
| Tax and legal review | Assess the treatment, disputed amounts and available arguments | A response tied to the actual transaction |
| Submission and follow-up | Prepare the response, track requests and keep filing confirmations | A complete record of the case |
Divide the work by issue rather than sending an unstructured folder of documents. A VAT deduction question, an unsupported expense and a disputed related-party charge need different explanations. A reconciliation schedule helps the accounting team and legal representative work from the same figures.
Separate principal tax, fines and penalty interest
An assessment may contain several components. Record the underlying tax, the fine and penalty interest separately for each period. Compare the authority’s calculation with the return history and taxpayer account. This makes it easier to see whether the disagreement concerns classification, timing, evidence or arithmetic.
Where records reveal an actual accounting error, consider the appropriate correction alongside the disputed issues. A well-prepared response distinguishes an admitted mistake from a legal or factual disagreement. Keep both the original filing and any correction, with the reason for the change.
Tax appeals and representation in Georgia
The administrative tax-dispute system generally starts with the Revenue Service and includes the Dispute Resolution Council under the Ministry of Finance. Court proceedings are a separate route, and particular decisions can have specific appeal rules. The route should follow the document and the case rather than a standard template.
A complaint needs a clear request, readable supporting records and proper representation. An appeal does not automatically suspend the decision. Review the payment, collection and security position alongside the merits of the dispute, so the business can plan cash flow while the case progresses.
Our multidisciplinary law office includes Georgian Bar Association members practising civil, administrative and criminal law, together with tax advisors and tax lawyers. This allows the accounting work and legal response to be coordinated where a tax matter raises wider business or legal questions.
Common issues in a Georgian tax review
VAT and documentary support
Reconcile purchase records, tax invoices, supplier information and the business use of purchases. Where the issue concerns a refund, keep the claim and the transactions supporting it in the same working file.
Payments to non-residents
Prepare the contract, income classification, payment calculation and residence evidence. Explain the withholding and VAT treatment separately. See our guide to payments abroad.
Related-party dealings
Connect agreements and reported balances to the pricing analysis and controlled transaction annex. Our transfer pricing guide explains the 2026 reporting update.
Payroll and individual entrepreneur income
Check the relationship reflected in the agreement against the way the work is actually organised. Keep payment records, payroll returns and any relevant status documentation together.
Your tax dispute document file
- The assessment, audit report, tax notice and all attachments.
- Evidence showing when each document was served or became available.
- Returns, amendments and the taxpayer-account extract for the periods involved.
- Contracts, invoices, bank records and delivery or service evidence.
- Previous responses, meeting notes and correspondence about the same issue.
- A calculation separating tax, fine and penalty interest.
- Authority for the person representing the taxpayer.
Preserve source files as well as readable copies. An exported ledger is easier to reconcile when the account codes, dates, currencies and document references are included. For a large case, agree a document index before requesting repeated exports from different team members.
International disputes and double taxation
A Georgian adjustment may also affect the overseas group company or individual. Keep the foreign assessment and local calculation connected. A treaty’s Mutual Agreement Procedure may be relevant where the same income is taxed inconsistently with the treaty.
Domestic appeal and treaty procedures have different purposes and time limits. Track them separately. Read our double taxation treaty guide when a dispute involves more than one jurisdiction.
Tax audit support before an enquiry arrives
Preparation makes an eventual review easier. Reconcile the main tax balances regularly, maintain a register of unusual transactions and retain the documents behind material tax positions. A year-end check can identify gaps while the people involved still remember the transaction.
Bookkeeping.ge offers accounting health checks, historical clean-up and audit-response support. Ongoing MONITOR and CONTROL services can improve the records feeding this work. A tax dispute or detailed investigation is a dedicated project with the accounting and legal team.
Tax audit and appeal questions
Should we wait until the deadline to send the assessment?
No. Send the actual notice and service information promptly. The team can identify the deadline while the accounting evidence is assembled.
Is a tax audit the same as a financial statement audit?
No. A Revenue Service tax review concerns tax treatment and compliance. A statutory financial statement audit is a different engagement. Our accounting team can organise records and coordinate with the relevant professionals.
Can you work with our current accountant?
Yes. A focused case file and clear responsibility list let the existing accountant, company management and legal representative work together.