According to Revenue Service of the Ministry of Finance, the Government of Georgia will implement an unprecedented initiative in the tax system within the framework of the 2020 anti-crisis plan to support businesses and citizens.
The agency notes, that from November 17, 2020, overpaid amount derived by VAT declaring may be automatically refunded to the taxpayer.
Mamuka Bakhtadze announced the VAT return reform in 2018 during his tenure as Minister of Finance. This mechanism has been in force since the beginning of 2019, but as it turns out, the difference between the acting rule and new initiative is that taxpayer can return money automatically without any request.
However, experts welcome the initiative and note that the technical changes, which has come into force from November 17, will free up administrative resources for businesses, as well as increase confidence of the private sector.
According to the Revenue Service, after using the new mechanism, taxpayers will be automatically reimbursed more than 1 billion GEL annually without filing a claim.
