The VAT threshold is 100,000 lari over any rolling twelve months
Georgia's standard VAT rate is 18%, and the registration threshold is GEL 100,000 of taxable turnover measured over any continuous twelve-month period, according to PwC's Worldwide Tax Summaries for Georgia, last reviewed on 2 September 2026. The word continuous is the one that catches people out: the clock is a rolling window, not the calendar year, so a strong summer plus a strong winter can cross the line in March. Foreign taxable persons with a fixed establishment in Georgia must register from the start of their taxable operations, with no threshold at all.
Why a rolling window is harder to track
A calendar-year threshold resets every January, so you only have to watch one running total. A continuous twelve-month threshold has no reset: at the end of every month you drop the month that fell out of the window and add the one that just ended, and the question is whether that moving sum has passed 100,000 lari. An owner with three or four units let by the night can be comfortably under for the tax year and over on a rolling basis, because the high season sits in the middle of the window rather than at the start. The practical answer is a simple monthly sheet of the last twelve months of turnover, checked on the same day each month.
Whether your letting is a taxable supply is a separate question
The threshold applies to taxable turnover, and not every rental receipt is taxable turnover. Georgian VAT treats different kinds of letting differently, and the treatment of a long residential lease is not the treatment of nightly accommodation sold to visitors. This article does not resolve that, and nobody should take a general figure as an answer about their own portfolio: what matters is how the supply is classified, and that turns on the contracts and the way the income is actually earned. The threshold figure is the thing worth memorising; the classification is the thing worth paying an accountant to get right once.
Two other lines in the same source
The same PwC page records two rules worth knowing alongside the threshold. Reverse-charge VAT applies to services supplied to Georgian VAT payers by a non-resident VATable person, which is how a foreign management platform, design service or marketing agency can create a Georgian VAT obligation for the local business buying from it. And business property tax runs at 1% a year on the annual average residual value of fixed assets other than land, with immovable property acquired before 2005 multiplied by a coefficient of between 1.5 and 3 depending on the acquisition date. Both are company-side rules rather than private-owner rules, which is precisely why they tend to be missed when an individual landlord incorporates.
Written by us from the source linked above, not investment, legal or tax advice. Figures and rules change — confirm anything that matters before acting on it.
