The Georgian Official Gazette published Public Decision No. 147, clarifying the VAT treatment of barter transactions involving goods and services.
The decision outlines how VAT applies to barter arrangements and how taxable amounts should be determined.
Key clarifications included in the decision
VAT applies to sales and barter transactions involving goods or services, excluding VAT itself but including subsidies linked to the price
The taxable amount in barter transactions is based on the reimbursement received by the taxable person for the goods or services supplied
Each party involved in a barter transaction may issue an invoice forming the basis for VAT calculation, subject to restrictions under Georgian law
The Tax Authority may determine the taxable amount using market prices in barter transactions involving goods or services
Where immovable property is exchanged, the VAT taxable amount for each party is determined according to the market value of the goods or services received, excluding VAT
The decision also includes practical examples illustrating the VAT treatment of barter transactions and entered into force on the same date of publication.
Source: gov.ge