Georgia's GEL 100,000 VAT registration threshold is outdated and should be increased, according to Zurab Dznelashvili, founder of Tax & Legal Solutions and former Deputy Finance Minister. Speaking to BMGTV, he backed a proposal by the Free Business Association to raise the threshold to GEL 300,000.
Dznelashvili said the current threshold, which has remained unchanged since 2005, no longer reflects today's economic reality. He argued that its original purpose was to shield small and newly established businesses from the administrative burden of VAT compliance, including invoicing, reporting, and the risk of tax penalties.
According to the tax expert, inflation and rising prices mean businesses now reach the GEL 100,000 turnover threshold much faster than in previous years. Raising the limit, he said, would reduce compliance costs for small businesses while making tax administration more efficient. He added that the previous calls to increase the threshold were likely rejected due to fiscal considerations and the government's interest in expanding the VAT payer base.
