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