A Georgian company can sell to EU customers, employ a local team and receive international payments. The useful tax answer starts with what you sell, who buys it and how the goods or services are delivered.
Describe the transaction before building the company
Separate the legal entity from the transaction it will carry out. A Georgian LLC may provide software services to an EU business, sell a subscription to consumers, export goods made in Georgia or buy goods that move directly between two other countries. These are different operating models, even when the seller’s name on the invoice is the same.
Write down the supplier, customer, countries, goods or services, delivery terms and payment chain. Identify who owns the goods at each stage and who deals with the customer. That short commercial description gives the tax, banking and customs work a common starting point.
| Business model | Main questions | Useful records |
|---|---|---|
| Services to an EU business | Customer status, place of supply, invoice treatment and Georgian income | Service agreement, business details and evidence of delivery |
| Digital services to consumers | Customer location, EU VAT responsibilities and platform involvement | Sales terms, location evidence and marketplace statements |
| Goods exported from Georgia | Classification, origin, customs, importer and product requirements | Supplier records, transport documents and customs declarations |
| Goods shipped directly between foreign countries | Location of the goods, contracting parties and import responsibilities | Purchase and sale contracts, shipping and delivery terms |
| A Georgian subsidiary serving its group | Activity in Georgia, intercompany pricing and payments | Group agreements, staff records and pricing calculations |
B2B services: keep the customer and delivery evidence
For a business-to-business service, establish the customer’s identity and business status, the service supplied and the relevant place-of-supply rule. The VAT result should follow that analysis. Retain the agreement, invoice and evidence that the service was performed.
For a developer, this might include project descriptions, acceptance records and a clear explanation of who owns the resulting intellectual property. For a marketing business, retain the brief, deliverables and agreed reporting. The file should explain what the customer bought and why the invoice belongs to the Georgian company.
Consumer digital sales: examine the EU VAT position
Electronically supplied services to EU consumers can be taxed where the consumer is located. Check the service, the customer information and whether a marketplace acts as the supplier for VAT purposes. The non-Union One Stop Shop can simplify reporting for qualifying services supplied by businesses established outside the EU.
Build the tax treatment into checkout, pricing and the sales records. Retain the customer-location evidence and reconcile the gross customer charge, any VAT, platform fees and the amount settled to the Georgian company. A platform payout is a settlement figure; it may not be the revenue figure needed for the accounts.
Physical goods: agree who handles the border
For goods, the delivery term affects responsibility for carriage, customs clearance, import charges and risk. Identify the importer of record and the person arranging any required EORI or local registration. Confirm the commercial arrangements with the carrier or customs representative before sending the first shipment.
Products can also require health, safety, conformity, labelling or other market-access documents. Determine these from the product and destination. A customs code is a useful starting point, but the product description and intended use must be accurate.
| Document | What it should establish |
|---|---|
| Purchase and sale contracts | Parties, product, quantity, price and delivery obligations |
| Commercial invoice and packing list | Accurate descriptions, values, quantities and package information |
| Transport records | Dispatch, destination, carrier and movement of the goods |
| Customs declarations | Exporter/importer, classification, value and procedure |
| Origin evidence | Manufacture or processing supporting the preferential claim |
| Product certificates | Relevant technical, safety, health or labelling compliance |
| Payment records | Connection between the contract, invoice and settlement |
DCFTA preferences follow origin, not the invoice address
The EU–Georgia trade agreement can provide preferential customs treatment for qualifying goods. The product must satisfy the applicable rules of origin and be supported by the required proof. Manufacturing, materials and processing records are therefore central to the claim.
Goods bought from a third country do not acquire Georgian origin simply because a Georgian company resells them. Check the product rule and the proof required for the particular shipment. Keep the origin analysis with the supplier evidence and customs file, so a later verification can be answered from the records.
Calculate the Georgian company’s own taxes
The company’s profit-tax position is a separate calculation from EU customs and VAT. For an ordinary Georgian company, retained profits and distributions are treated under the distributed-profit system. Keep owner payments, business costs and group charges correctly recorded.
Where the activity is IT, compare the actual operation with Virtual Zone or International Company requirements. Include the salary bill and local activity in the comparison. Use the dividend calculation when planning cash distributions.
Make management, banking and contracts tell the same story
Document where decisions are made, who negotiates and signs contracts, where the work is performed and how the company is funded. Banks use the commercial model, customer countries and source of funds when reviewing an application and later transactions.
The owner’s residence country may also examine management, control or the owner’s interest in a foreign company. Keep the Georgian records consistent with the real operation and coordinate any relevant foreign-country analysis before implementing the structure.
Bring the first transaction, not just a company name
Send a sample sales contract, product or service description, customer and supplier countries, expected volumes and proposed delivery terms. Our Tbilisi team can connect the company setup with the Georgian tax, accounting, banking and documentary work.
Request a consultationFrequently asked questions
Does a Georgian invoice establish Georgian origin for goods?
Preferential origin follows the applicable product and processing rules. The seller’s invoice should be supported by the manufacturing, supplier and origin records required for the claim.
What should an EU-facing service company retain?
Keep the contract, customer identity and business-status evidence, invoices, delivery records and payment reconciliations. For platform sales, retain the platform agreement and gross-to-net sales statements.
What should be checked before the first shipment?
Confirm classification, origin, delivery terms, importer responsibilities, product requirements and the documents needed by the carrier and customs representative.
How should the company’s Georgian taxes be planned?
Calculate VAT, payroll, company profit tax and shareholder distributions from the actual activity and payments. Assess a special IT status against the company’s work, staff and records.
Legal basis: EU–Georgia DCFTA rules of origin; EU VAT place-of-supply rules; Tax Code of Georgia.