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Ministry of Finance to Introduce Automatic System for VAT Repayment

Ministry of Finance to Introduce Automatic System for VAT Repayment

Minister of Finance Mamuka Bakhtadze plans to introduce an automatic system of VAT repayment. Businessmen should receive excessive VAT back in 5-7 days after submission of an electronic application, he noted.

“This signifies that our businessmen will mobilize about 500mln GEL in addition”, Mamuka Bakhtadze said.

Zurab Lalazashvili, BDO managing partner in Georgia, positively appraises the new initiative of the Finance Minister. The VAT repayment automatic system will enable businessmen to save time, he said.

Currently, businessmen have to spend about 20-30 hours to return money. Business sector also employs human resources to this end, Lalazashvili noted.

“We will have much simpler and more refined mechanism if VAT is returned in automatic regime. Businessmen will not waste time on applications, visits and so on.

The more cash business sector accumulates, the less it will depend on loans, because without finances business borrows loans and this makes negative affect on currency and so on”, Lalazashvili noted.

Source: bm