Amendment to the Order
An increase in the list of goods exempt from VAT without the right of deduction
According to the joint order №01-37/N/№91 (02.04.2020) of the Minister of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia and the Minister of Finance of Georgia amendments have been made in the joint order №01-69/N/№451 (15.12.2017) of the same Ministers. Particularly, the 3rd part was added to the 1st article of the order, that defines the following additional list of goods designated for therapeutic/medical purposes, supply and/or importation of which is exempt from VAT without the right of deduction according to the paragraph J1 of part 1 of article 168 of GTC:
a) Tests specified under the code 3822 00 000 00 of the National Commodity Nomenclature of Foreign Economic Activities
b) Plastic medical shoe covers specified under the code 3926 20 000 00 of the National Commodity Nomenclature of Foreign Economic Activities
c) Face protector shields specified under the codes 3926 20 000 00 and 9004 90 900 00 of the National Commodity Nomenclature of Foreign Economic Activities
d) Nitrile surgical and other gloves specified under the codes 4015 11 000 00 and 4015 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activities
e) Insulation coveralls, medical gowns, sets of medical gowns, caps and shoe covers under the code 6210 10 900 00 of the National Commodity Nomenclature of Foreign Economic Activities
f) Masks, shoe covers without soles made of cotton materials and textile shoe covers specified under the code 6307 90 990 00 of the National Commodity Nomenclature of Foreign Economic Activities
g) Medical caps specified under the code 6506 99 909 00 of the National Commodity Nomenclature of Foreign Economic Activities
h) Protective plastic glasses specified under the code 9004 90 900 00 of the National Commodity Nomenclature of Foreign Economic Activities
i) Contactless thermometers specified under the code 9025 19 200 00 of the National Commodity Nomenclature of Foreign Economic Activities.
The order came into force from 3 April 2020.
At the same time, taking into account the epidemiological situation, the export and/or re-export of the above-mentioned goods, as well as the following goods, was temporarily prohibited:
- Artificial respiration machines specified under the code 9019 20 000 00 of the National Commodity Nomenclature of Foreign Economic Activities
- Disinfectant products specified under the code 3808 94 of the National Commodity Nomenclature of Foreign Economic Activities.
Amendment to the Decree of the Government
Remote Dispute Resolution
According to the Decree №212 (02.04.2020) of the Government of Georgia the amendment has been made into the Decree №181 of the Government of Georgia (23 March 2020) about measures to be taken for preventing the spread of new coronavirus. According to the amendment the 6th paragraph was added to the article 13th. In particular, the tax/custom dispute resolution authorities under the system of Ministry of Finance of Georgia have the right to review the complaint remotely by using technical means as well as to review the complaint in the absence of the applicant, if the actual circumstances of the dispute are fully established on the basis of the case file.
The Decree came into force from 3 April 2020.
Compensation for employees and self-employed persons
In accordance with the decree of the Government of Georgia №286, on May 4, 2020, a target state program was approved to reduce the damage from a new coronavirus infection.
The program defines the rules for providing assistance, persons authorized to receive compensation, and the amount of compensation.
Hired employees, who are no longer paid
From May 2020, persons affected by pandemic will be able to receive compensation in the amount of 200 GEL per month for a maximum of 6 months if they satisfy the following conditions:
- From at least in one of the first three months of 2020, they received salary
- During a state of emergency, employment with the employer was terminated/suspended and/or no longer receives a salary from the employer in April and/or May.
The program will be available for Georgian citizens, foreign citizens with a permanent residence permit, stateless persons and persons with a temporary residence permit under refugee or humanitarian status.
According to the decree, any monetary payments or non-monetary benefits paid to the employee by the employer shall be considered as salary in order to receive compensation, with the exception of cases of payment of an insurance premium or other amount under a contract of life and health insurance or pension insurance.
The payment of this compensation depends on the information provided by the employer to Revenue Service. Within six months from May, the employer using the personal website of the taxpayer electronically submits the names, surnames, personal numbers, contact details and bank details of persons authorized to receive compensation no later than the 15th day of each month.
Compensation is paid by the Employment Agency through a banking institution to the bank account of the person specified in the appendix no later than the 30th day of the month following the corresponding month (the month in which the person did not receive the salary).
The first reporting month to submit the information for reimbursement of the compensation is April 2020.
Compensation is suspended in the following cases in accordance with the Decree:
- On the basis of the person’s application
- In case of a citizen of Georgia, in the event of deprivation of Georgian citizenship by a person or loss of Georgian citizenship
- In case of death of a person
- If the salary was paid at least once in the period after May 1, 2020.
One-time compensation for self-employed persons
From May of this year, the state budget will begin to issue one-time monetary compensation in the amount of 300 GEL to self-employed people.
For the reasons of receiving of the compensation, a self-employed person is any individual who has been engaged in any type of economic activity and received income, with the exception of an employment income, namely:
- Individuals registered in the Revenue Service
- Individuals who were engaged in economic activities and/or had income, but are not registered in the Revenue Service.
To receive compensation, an individual must fill out an electronic application on the electronic portal of the Ministry of Health (www.moh.gov.ge) no later than July 1, 2020.
Registered self-employed persons
The list of self-employed persons registered in the Revenue Service entitled to receive compensation shall be drawn up by the Revenue Service until May 20, 2020.
According to the Decree, for such persons, following cases will be considered as undertaking of economic activities:
- Submission of tax/customs declaration/calculations to the Service
- Using a a cash register/document equal to check
- Issued waybill/tax invoice/tax document
- Payment of tax or Revenue Service administrative fee to the budget.
Compensation will be paid within 10 business days from the date of filing the electronic application by a person authorized to receive it.
Unregistered self-employed persons
Unregistered self-employed person must submit a request and a document proving the source of income, such as a document proving the source of income issued by a person registered in Georgia as a taxpayer (except for a non-profit person) (including a bank statement, permission/license issued to a person by municipality or other administrative authority for any activity, etc.)
The State Employment Support Agency, together with the working group, will review electronic applications submitted by unregistered self-employed persons, groups them in accordance with the specifics of their activities, and submit the list to the Intergovernmental Commission established by the Minister of Health within 2 weeks.
The Agency shall ensure that the compensation is transferred to the applicant’s bank account indicated in the application within 10 working days after the decision of the Commission.