Professional Tax Compliance & SARAS Reporting Services in Georgia

Complete VAT, CIT, Payroll Tax Management & Annual SARAS Financial Statement Submission

Navigating Georgia's tax landscape requires expertise, attention to detail, and constant vigilance over changing regulations. From monthly VAT declarations and reverse-charge VAT compliance to corporate income tax calculations and mandatory SARAS financial statement submissions, businesses face a complex web of tax obligations that can quickly become overwhelming.

Our comprehensive tax compliance and SARAS reporting services ensure your business meets all Georgian tax requirements accurately and on time, protecting you from penalties while optimizing your tax position within the law.

 

Why Professional Tax Compliance Matters

Tax compliance in Georgia isn't optional—it's a legal requirement with significant financial consequences for non-compliance. More importantly, proper tax management can save your business money, improve cash flow, and provide the clean financial records necessary for growth, financing, and exit opportunities.

Penalty Avoidance: Late or incorrect tax filings trigger automatic penalties and interest charges from the Revenue Service. Even small mistakes compound over time, creating unnecessary costs that professional compliance easily prevents.

Cash Flow Optimization: Understanding VAT mechanics, particularly reverse-charge VAT and input VAT recovery, can significantly improve your cash position. Many businesses overpay taxes simply because they don't claim all available deductions.

Audit Readiness: Revenue Service audits happen. Businesses with professional tax compliance and organized records navigate audits smoothly, while those with poor records face extended investigations, disputed adjustments, and additional assessments.

Business Credibility: Clean tax compliance demonstrates professionalism to banks, investors, and potential acquirers. Companies seeking financing or investment need impeccable tax records to support due diligence.

Peace of Mind: When you know your taxes are handled correctly by experts, you can focus completely on growing your business rather than worrying about compliance deadlines and regulatory changes.

Our Comprehensive Tax Compliance Services

We manage all aspects of your Georgian tax obligations, from monthly declarations to annual reporting, ensuring accuracy, timeliness, and optimization.

VAT Compliance & Management

Value Added Tax at 18% applies to most business transactions in Georgia, creating significant compliance requirements for VAT-registered businesses.

Monthly VAT Declarations

We prepare and file your monthly VAT returns through the RS.ge portal, calculating:

• Output VAT (VAT charged on your sales)
• Input VAT (VAT paid on your purchases that can be reclaimed)
• Net VAT position (payable or refundable)
• Supporting schedules and documentation

VAT Registration Services

Businesses exceeding 100,000 GEL in VAT-taxable turnover within any 12-month period must register for VAT. We handle:

• Determining when registration is required
• Completing registration applications
• Setting up VAT accounting systems
• Initial VAT compliance setup

Voluntary VAT Registration

Even below the 100,000 GEL threshold, voluntary VAT registration can benefit businesses that:

• Purchase services from abroad (allowing reverse-charge VAT recovery)
• Make significant purchases with VAT (enabling input VAT deduction)
• Want to appear more established to clients and partners

We analyze whether voluntary registration makes financial sense for your specific situation.

Input VAT Recovery

One of the most valuable aspects of VAT registration is recovering VAT paid on business purchases. We ensure you claim all eligible input VAT on:

• Office supplies and equipment
• Professional services
• Rent and utilities
• Technology and software
• Marketing and advertising
• Business travel and accommodation

Many businesses leave money on the table by failing to claim all available input VAT deductions. We maximize your recoveries within legal limits.

VAT on Exports (0% Rating)

Services provided to businesses outside Georgia are generally zero-rated for VAT purposes. We ensure proper documentation and reporting to support zero-rating, including:

• Verifying customer VAT status
• Maintaining required evidence
• Proper invoice formatting
• Correct reporting on VAT returns

Reverse-Charge VAT Compliance

Reverse-charge VAT is a unique Georgian requirement that catches many foreign business owners off guard. Every Georgian business purchasing services from abroad must handle this correctly.

What is Reverse-Charge VAT?

When you purchase services from foreign (non-Georgian) companies, you must calculate and declare 18% VAT on those purchases as if you had purchased them in Georgia. This applies to:

• SaaS subscriptions (Zoom, Salesforce, Adobe, etc.)
• Cloud services (AWS, Google Cloud, Microsoft Azure)
• Foreign contractor services
• Marketing and advertising services from abroad
• Consulting and professional services
• Any other services from non-Georgian providers

Monthly Reverse-Charge Declarations

We file monthly reverse-charge VAT declarations for all foreign service purchases, even in months when you have no regular VAT obligations.

Reverse-Charge VAT Recovery

Here's the crucial point many businesses miss: If you're VAT-registered, you declare reverse-charge VAT and simultaneously claim it back in the same filing, resulting in zero net payment. We ensure this process happens correctly so you don't pay 18% unnecessarily on foreign service purchases.

Non-VAT Registered Businesses

If you're not VAT-registered but purchase services from abroad, you must still declare and pay the 18% reverse-charge VAT monthly. We calculate exact amounts and manage these declarations.

Corporate Income Tax (CIT) Management

Georgia operates under the Estonian model of corporate taxation, where profits are taxed only upon distribution, not when earned.

Understanding Georgian CIT

• Standard CIT rate: 15% on distributed profits
• Tax is paid only when profits are distributed as dividends or other distributions
• Retained earnings reinvested in the business are not taxed
• This encourages business growth and reinvestment

What Triggers CIT?

Corporate income tax becomes payable when you:

• Distribute dividends to shareholders
• Make certain payments to related parties
• Incur non-business expenses
• Provide hidden profit distributions

CIT Calculations & Planning

We calculate your CIT liability when distributions occur and help you plan distributions tax-efficiently, including:

• Timing of dividend payments
• Optimal distribution amounts
• Documentation requirements
• Quarterly CIT payment obligations

Special CIT Regimes

Certain Georgian companies benefit from reduced CIT rates:

• International Company Status: 5% CIT on distributed profits (plus 5% on payroll)
• Virtual Zone Status: 0% CIT (exempt)
• Free Industrial Zone Status: 0% CIT (exempt)

We can advise whether your business qualifies for these beneficial regimes and assist with applications.

Payroll Tax Compliance

Employee compensation creates monthly tax obligations that must be filed correctly and on time.

Income Tax Withholding (20%)

We manage monthly withholding of 20% income tax from all employee salaries and file declarations with the Revenue Service.

Pension Contributions (4% Total)

• Employee portion: 2% (withheld from salary)
• Employer portion: 2% (additional employer cost)
• Applicable only to Georgian citizens and permanent residents

Monthly Payroll Tax Filing

By the 15th of each month, we file complete payroll tax declarations showing all employees, gross salaries, tax withheld, and pension contributions.

Annual Reconciliation

Year-end payroll tax reconciliation ensures all monthly filings align with actual annual compensation, correcting any discrepancies.

SARAS Financial Statement Reporting

The Service for Accounting, Reporting and Auditing Supervision (SARAS) requires most Georgian businesses to submit annual financial statements through the Reportal.ge portal.

What is SARAS?

SARAS is a Georgian government agency under the Ministry of Finance responsible for supervising accounting, reporting, and auditing standards. Since 2017, SARAS has required comprehensive financial reporting from Georgian businesses to improve transparency, attract investment, and align with EU standards.

Who Must Submit SARAS Reports?

Georgian companies are categorized into four groups based on size, with different reporting requirements:

Category 1 Entities (Large Businesses):

• Revenue exceeding 100 million GEL
• Assets exceeding 50 million GEL
• More than 250 employees

Category 2 Entities (Medium Businesses):

• Revenue between 16 million and 100 million GEL
• Assets between 8 million and 50 million GEL
• Between 50 and 250 employees

Category 3 Entities (Small Businesses):

• Revenue between 2 million and 16 million GEL
• Assets between 1 million and 8 million GEL
• Between 10 and 50 employees

Category 4 Entities (Micro Businesses):

• Revenue below 2 million GEL
• Assets below 1 million GEL
• Fewer than 10 employees

Categories 1-4 must all submit annual financial statements to SARAS. The main difference is reporting complexity and audit requirements—larger companies face more stringent standards.

SARAS Submission Deadline: October 1st

All companies must submit their annual financial statements by October 1st of the year following the reporting period. For example, 2024 financial statements must be submitted by October 1, 2025.

If your reporting period doesn't align with the calendar year, statements must be submitted within 9 months following your fiscal year-end.

What SARAS Statements Include

Depending on your category, SARAS submissions include:

• Balance Sheet: Financial position at year-end
• Income Statement (P&L): Annual revenue, expenses, and profit
• Cash Flow Statement: Sources and uses of cash
• Statement of Changes in Equity: Movements in shareholders' equity
• Notes to Financial Statements: Explanations and additional details
• Management Report: Overview of business performance (Categories 1-3)
• Auditor's Report: Required for Categories 1-2, optional for Category 3

Financial Reporting Standards

• Categories 1-3 typically use IFRS or IFRS for SMEs
• Category 4 can use simplified financial reporting standards

Our SARAS Reporting Services

We prepare complete SARAS financial statement packages including:

1. Year-End Financial Statements: Fully compliant balance sheet, income statement, cash flow statement, and equity statement prepared according to appropriate accounting standards.

2. Notes Preparation: Comprehensive notes explaining accounting policies, significant transactions, and financial statement details.

3. Management Report: For qualifying businesses, we prepare management reports discussing operations, financial performance, and business outlook.

4. Reportal.ge Submission: We handle all technical aspects of uploading and submitting statements through the official portal.

5. Deadline Management: We track your deadline and ensure submission happens on time, avoiding late filing penalties.

6. Audit Coordination: If audit is required, we coordinate with auditors and provide all necessary documentation.

Public Disclosure

SARAS financial statements become publicly available on Reportal.ge, allowing anyone to review your company's financial information. This transparency:

• Builds credibility with potential partners and customers
• Supports financing applications
• Demonstrates business stability and professionalism
• Aligns Georgia with international transparency standards

Other Tax Compliance Services

Property Tax

Annual property tax on business-owned real estate and land must be declared and paid. We calculate obligations and file declarations.

Excise Tax

For businesses importing or producing excise goods (alcohol, tobacco, fuel, etc.), we manage excise tax calculations and monthly reporting.

Import/Export Compliance

Businesses importing goods must navigate customs duties, import VAT, and documentation requirements. We provide guidance and manage tax aspects of international trade.

Withholding Tax on Payments to Non-Residents

Payments to foreign companies for services, royalties, or interest may trigger 10-15% withholding tax obligations unless double taxation treaties apply. We determine when withholding applies and manage compliance.

Monthly Tax Compliance Calendar

Staying compliant means meeting numerous deadlines consistently. Here's what we manage each month:

By 15th of Each Month:

• VAT declaration and payment (if VAT-registered)
• Reverse-charge VAT declaration and payment
• Payroll tax declarations (income tax and pension)
• Payroll tax payments to Revenue Service

By 20th-End of Month (Quarterly):

• Digital services VAT (for foreign digital service providers)

Quarterly:

• CIT payments (if making profit distributions)

Annually:

• Property tax declaration (before November 1st)
• Property tax payment (by November 15th)
• SARAS financial statement submission (by October 1st)
• Annual tax reconciliations and adjustments

Our Tax Compliance Process

We've developed a systematic approach ensuring nothing falls through the cracks.

Step 1: Initial Tax Assessment

Business Structure Review: We analyze your company structure, activities, and current tax registrations to identify all applicable tax obligations.

Compliance Gap Analysis: We review existing tax filing history, identify any gaps or errors, and create a plan to achieve full compliance.

Registration Verification: We confirm all necessary tax registrations (VAT, CIT, payroll) are in place and current.

System Setup: We establish processes for data collection, filing, and payment that integrate with your accounting.

Step 2: Monthly Tax Management

Data Collection: We gather necessary information—sales records, purchase invoices, payroll data, foreign transactions—to prepare accurate filings.

Tax Calculations: Our team calculates all tax obligations including VAT, reverse-charge VAT, payroll taxes, and any other applicable taxes.

Declaration Preparation: We prepare complete, accurate tax declarations for submission to the Revenue Service.

RS.ge Filing: We submit all declarations electronically through the Revenue Service portal before deadlines.

Payment Calculation: You receive exact payment amounts, proper payment codes, and instructions for tax remittances.

Documentation: We maintain complete records of all filings, payments, and supporting documentation for future reference and audit readiness.

Step 3: Annual SARAS Reporting

Year-End Financial Close: We finalize your annual financial statements, ensuring all transactions are properly recorded and classified.

SARAS Statement Preparation: We prepare complete financial statement packages according to applicable accounting standards (IFRS, IFRS for SMEs, or simplified standards).

Quality Review: Senior accountants review all statements for accuracy, completeness, and compliance before submission.

Reportal.ge Submission: We submit your financial statements through the official portal well before the October 1st deadline.

Confirmation & Records: You receive confirmation of successful submission and copies of all filed documents.

Step 4: Ongoing Support & Optimization

Regulatory Updates: We monitor changes to Georgian tax law and update your compliance processes accordingly.

Tax Planning: We identify opportunities for tax optimization, including timing strategies, structural improvements, and available incentives.

Audit Support: If selected for tax audit, we provide complete documentation and represent your interests throughout the process.

Advisory Services: Year-round access to tax experts for questions about specific transactions, tax treatment, or strategic decisions.

Common Tax Compliance Mistakes We Help You Avoid

Failing to Register for VAT: Many businesses cross the 100,000 GEL threshold without realizing registration is mandatory, leading to retroactive tax assessments and penalties.

Ignoring Reverse-Charge VAT: Foreign service purchases create tax obligations even for non-VAT-registered businesses. Failure to declare reverse-charge VAT is a common and costly mistake.

Not Claiming Input VAT: VAT-registered businesses often fail to claim all eligible input VAT deductions, essentially overpaying taxes unnecessarily.

Missing SARAS Deadlines: The October 1st SARAS deadline is firm. Late submissions result in penalties and can affect your company's reputation.

Incorrect CIT Calculations: The Estonian model is straightforward but nuanced. Mistakes in determining what constitutes a distribution can lead to unexpected tax liabilities.

Poor Documentation: Revenue Service audits require supporting documentation for all tax positions. Inadequate records lead to disputed adjustments and additional assessments.

Misunderstanding DTA Benefits: Businesses often fail to properly apply double taxation treaty benefits when paying foreign contractors, resulting in unnecessary withholding.

Tax Optimization Strategies

Beyond mere compliance, we help optimize your tax position legally and ethically:

VAT Cash Flow Management: Timing purchases and understanding VAT recovery mechanics can improve monthly cash flow significantly.

Distribution Planning: Strategic timing and structuring of dividend distributions minimizes CIT while providing shareholder returns.

Special Status Qualification: We identify opportunities to qualify for International Company Status, Virtual Zone Status, or other beneficial tax regimes.

Transaction Structuring: Properly structuring complex transactions ensures optimal tax treatment while maintaining full compliance.

Cross-Border Efficiency: For businesses with international operations, we structure activities to minimize tax leakage while respecting Georgian and foreign tax obligations.

Why Choose Our Tax Compliance & SARAS Services?

Deep Georgian Expertise: Our team specializes in Georgian tax law, Revenue Service procedures, and SARAS reporting requirements, staying current with all regulatory changes.

RS.ge Portal Mastery: We handle thousands of filings annually through the Revenue Service portal, understanding all technical requirements and nuances.

Proactive Deadline Management: Automated tracking and early preparation ensure you never miss a filing deadline or face late penalties.

Comprehensive Service: From daily transactions to annual reporting, we manage all tax compliance aspects, providing true peace of mind.

Optimization Focus: We don't just file taxes—we actively seek legal ways to reduce your tax burden and improve cash flow.

Audit Protection: Our thorough documentation and accuracy give you confidence during Revenue Service audits or reviews.

Transparent Communication: You always know your tax position, upcoming obligations, and any areas requiring attention or decision-making.

Scalable Solutions: Whether you're a small startup or established enterprise, our services scale with your business growth.

Integration with Accounting Services

Tax compliance flows from accurate accounting. Our services integrate seamlessly:

Unified Data: Accounting entries flow directly into tax declarations, ensuring consistency and eliminating duplicate data entry.

Real-Time Tax Position: As transactions are recorded, we track your developing tax obligations, providing early visibility into payment requirements.

Comprehensive Reporting: You receive both financial reports for management and tax reports for compliance, all from a single source.

Efficiency: Integrated services reduce costs compared to separate bookkeeping and tax providers who must reconcile data.

Getting Started with Tax Compliance Services

Upgrading to professional tax compliance is straightforward:

Step 1: Free Consultation

Contact us to discuss your business, current tax situation, and compliance needs. We assess where you stand and identify any urgent issues.

Step 2: Compliance Proposal

We provide a detailed proposal outlining services, timeline, and transparent pricing based on your specific requirements.

Step 3: Onboarding

Once engaged, we collect necessary access credentials, review historical filings, and set up systems for ongoing compliance.

Step 4: Current Period Filing

We take over current tax periods, ensuring immediate compliance and establishing baseline processes.

Step 5: Ongoing Management

Month after month, year after year, we handle all tax compliance while you focus on your business.

Pricing

Our tax compliance services are priced based on business complexity, transaction volume, and specific requirements:

Essential Tax Compliance Package: Monthly VAT, reverse-charge VAT, and payroll tax filings plus annual SARAS reporting. Ideal for small businesses with straightforward operations.

Comprehensive Tax Compliance Package: Everything in Essential plus CIT management, property tax, import/export compliance, tax optimization consulting, and enhanced audit support.

SARAS-Only Service: For businesses managing monthly taxes internally but needing professional SARAS financial statement preparation and submission.

Add-On Services: Special projects like tax registration, audit response, refund claims, and strategic tax planning available as needed.

Contact us for a customized quote based on your specific situation and compliance needs.

Transform Your Tax Compliance Today

Stop worrying about tax deadlines, penalties, and complex regulations. Let our experienced team handle all aspects of your Georgian tax compliance and SARAS reporting while you focus on growing your business.

Our professional tax services ensure perfect compliance, optimize your tax position, and provide the peace of mind that comes from knowing experts are managing one of your business's most critical responsibilities.

 

Ready to achieve perfect tax compliance? Contact us today for a free consultation. We'll review your current tax situation, identify any compliance gaps, and show you exactly how our services protect your business while optimizing your tax position. Let us handle the complexity of Georgian tax law while you concentrate on what you do best—running and growing your business.

Professional tax compliance and SARAS reporting services in Tbilisi and throughout Georgia. VAT management, corporate income tax, payroll taxes, reverse-charge VAT compliance, and annual financial statement submission from experienced tax professionals who keep your business fully compliant.