Home / Business / Business Taking Initiative to Change VAT System

Business Taking Initiative to Change VAT System

Representatives of Georgian business applied to the Minister of Finance with several initiatives. Business demands to change the VAT system. Under the current legislation, if the turnover of the company exceeds GEL 100 thousand, theentrepreneur pays   a turnover tax of 18%   in the form of VAT.

Upon the initiative of  a representative of “Dio” hotel situated  in Nunisi,  the regional tourist enterprises which turnover is more than  GEL 100 thousand andpaying  VAT, should be exempt from VAT  while alower limit of GEL 100 thousand  should be increased to GEL 200 thousand.

“Maknatuna” founder Gia Gumberidze explains to “Commersant” that not a full amount of  any business with a turnover of above GEL 100 but  a subsequent accumulated turnover  of GEL 100 000  should be taxed.

Gumberidze accounts it for the fact  that small enterprises, whose turnover is not too much more than GEL 100 thousand, are forced to evade taxes  while if the initiative is carried out, they will not be able to hide the money.

The abovementioned initiative was proposed by the businessmen at a meeting with  Finance Minister. For his part, Minister of Finance Nodar Khaduri has not responded to  the idea yet.

The Minister proposed the representatives of business to hold regular thematic meetings to consider the problems in one context.