Bookkeeping Requirements for Companies Operating in Georgia
- Tinatin Tolordava
- Apr 25
- 14 min read
Table of contents
Why Bookkeeping Is Crucial in Georgia
Georgia has become a favorite for foreign investors. Setting up a company, opening a business bank account, and getting started are relatively straightforward. Low taxes and minimal red tape only add to the appeal. However, once your business is operational, things become serious. Bookkeeping isn’t optional. It is a legal requirement, and it begins from day one.
This often catches many business owners off guard. You may be focused on growth, hiring, or securing your first major contract. But if your financial records aren’t in order, you’re building on shaky ground. The Revenue Service in Georgia expects consistent, accurate, and timely reporting. You risk fines, delays, and audits if your books are sloppy or incomplete.
Banks won’t consider loan applications without clean records. Investors won’t either. And if you're trying to manage taxes, payroll, or VAT filings without solid bookkeeping, you’ll quickly run into problems.
The message is the same whether you're running a logistics company, a tech startup, or a foreign-owned corporation. Keep your records straight. In Georgia, proper bookkeeping isn’t just about staying organized; it's also about maintaining accurate records. It’s the key to maintaining your business's legal compliance and financial health.
Who Needs to Maintain Books in Georgia?
If you're doing business in Georgia, you are required to maintain accurate books. That applies whether you are a local entrepreneur or a foreign investor. It doesn’t matter if you registered your company last week or five years ago. When your business is operational, bookkeeping requirements in Georgia become part of your legal obligations.
Let’s break it down. If you’ve formed an LLC, JSC, or a representative office, you must maintain complete financial records. These include invoices, expense receipts, payroll reports, contracts, and bank transactions. Even if your company isn’t making a profit yet, or you're only handling internal transfers, the records must still be complete and accurate.
Foreign-owned businesses aren’t exempt. They’re often under more scrutiny. If you’re running a 3PL company in Georgia, importing goods, or working with international clients, the Revenue Service wants to see how your transactions flow. Cross-border payments, VAT handling, and customs reporting rely on good bookkeeping.
There’s also a difference between resident and non-resident entities. Resident companies are taxed on global income and must meet full compliance standards, including annual filing of financial statements. Non-resident companies are still subject to Georgian tax laws if they earn income from Georgian sources. Therefore, if you are operating through a branch or local office, the rules still apply.
Are startups or small businesses exempt?
Not really. Even if you fall under Georgia’s micro or small business regimes, you must:
Track income and expenses
File simplified tax reports.
Keep supporting documentation for all transactions.
These regimes offer simplified taxation, but not exemption from bookkeeping.
And here's something many founders overlook. If you plan to apply for business loans in Georgia, work with the Bank of Georgia, or register your business with local registries, your financial records will be the first thing they will ask for. Without consistent bookkeeping, your company appears risky, regardless of how promising the idea may be.
In short, if your company is active in Georgia in any capacity, you need a bookkeeping system that works for compliance, avoids surprises, allows you to stay in control, and allows you to grow with confidence.
Quick Checklist: Do You Need Bookkeeping in Georgia?
Is your company registered and active?
Are you earning income or issuing invoices in Georgia?
Are you applying for a business loan in Georgia or working with local banks?
Are you VAT-registered or planning to be?
If you answered yes to any of the above, you must fully comply with Georgia's bookkeeping laws.
What Are the Legal Bookkeeping Requirements in Georgia?
The bookkeeping requirements in Georgia are tied directly to how you report income, calculate expenses, and file tax returns. If the numbers don’t line up or the documents are missing, the Revenue Service won’t accept your filings. Worse, they might open an audit.
So, what exactly do you need to maintain?
Accounting Framework: IFRS or Local Standards?
Georgia officially follows IFRS (International Financial Reporting Standards), which means that your books must be structured to reflect accurate and transparent financial activity. But there’s a practical side, too.
Large companies, including public interest entities and foreign subsidiaries, must use full IFRS.
Small and medium-sized enterprises can use the simplified International Financial Reporting Standards (IFRS) for SMEs.
Micro businesses and freelancers in a special tax regime may use cash-based records, but even these need to be well-organized and accessible.
If you're unsure which standard applies to your business, having a local advisor like Gegidze becomes critical. We guide clients through the setup process based on their size, sector, and specific legal obligations.
Language and Format of Accounting
Your financial records must be:
In Georgian, or at least include a Georgian translation.
Maintained using approved software or manual ledgers that follow Georgia’s chart of accounts.
This is where many foreign-owned companies often fall short. Running your books in Excel or using foreign accounting software without localization will cause problems. If the Revenue Service can’t read or interpret your files, your submissions can be rejected, regardless of accuracy.
What Must Be Recorded?
A compliant bookkeeping system must track:
Sales invoices and service contracts
Purchase records and supplier receipts
Payroll and HR-related payments
Bank statements and reconciliations
Asset purchases and depreciation
Loan agreements and credit obligations
Tax filings (VAT, CIT, and personal income tax)
Every transaction needs a trail. If you receive payment from a client, an invoice should be issued. If you pay rent, there should be a contract and proof of payment. You need to be able to provide documentation supporting your numbers.
Frequency and Structure of Reports
Depending on your tax registration, you’ll need to generate:
Monthly VAT reports
Quarterly or annual corporate income tax filings
Payroll reports and income tax withholdings
Annual financial statements for submission (and audit, if applicable)
Deadlines matter. Missing just one monthly VAT filing can result in a fine, and repeated issues can lead to a more thorough review. These reports also need to match the data in your books. That’s why keeping your accounting system up to date is crucial, not just at year-end.
Why This Matters for Foreign Companies
If you’re operating through a Georgian corporation or foreign branch, you’re legally required to keep your records within Georgia. That means cloud systems hosted abroad must be accessible locally, and documents must be retained in a format acceptable to Georgian authorities.
This is especially important if you’re applying for loans from institutions like the Bank of Georgia or TBC, registering for VAT, or planning to distribute dividends. Your books must be accurate, complete, and audit-ready in all these cases.
How Bookkeeping Connects to Tax Reporting in Georgia
If you’re doing business in Georgia, bookkeeping isn't just something you do to keep your numbers organized. It directly feeds into how you report and pay taxes. And that’s where most companies get stuck, not because taxes are high, but because the reporting is strict, structured, and monitored closely.
Every transaction your company records eventually becomes a monthly or annual tax filing. If your books are inaccurate or incomplete, your tax report will likely be incorrect or incomplete as well. That’s where penalties start, and in some cases, deeper audits follow.
What Taxes Rely on Your Bookkeeping?
Several key taxes in Georgia are driven entirely by what’s in your books:
Corporate Income Tax (CIT):Georgia operates a deferred corporate income tax (CIT) system for most companies, which means you only pay tax when profits are distributed. However, even if you’re not paying immediately, you still need to report your financial information accurately.
Value Added Tax (VAT):VAT returns are due monthly, and they’re based on real-time tracking of sales and purchases. If your bookkeeping is off, your VAT report won’t match, and you’ll either overpay or face correction notices.
Payroll and Personal Income Tax:Every salary payment must be supported by a documented employment agreement, processed through payroll, and accurately recorded. This is particularly crucial for companies that use staff leasing or offer freelance contracts.
Withholding Taxes and Cross-Border Payments:The tax treatment depends on how those payments are recorded if you're paying foreign contractors. Your bookkeeping needs to show the source, destination, and agreement behind the transfer.
Key Business Taxes in Georgia
Tax Type | Rate | When It Applies |
Corporate Income Tax (CIT) | 15% of the distributed profits | Only when profits are distributed (retained earnings are not taxed) |
Value Added Tax (VAT) | 18% standard rate | Applies to most goods and services; monthly filing required |
Payroll Tax (Employee) | 20% Personal Income Tax | Deducted from gross salary and paid monthly by the employer |
Payroll Tax (Employer) | 2% Pension Contribution | Paid in addition to gross salary; mandatory for Georgian citizens and residents |
Withholding Tax (Non-resident) | 10% on most service payments | Applies to cross-border payments unless reduced by a double tax treaty |
Dividend Withholding Tax | 5% | Applies when dividends are paid to shareholders |
All Tax Reports Must Match Your Books
It’s not enough to file a tax return. The Revenue Service may review your filings against:
Your bank account activity
Your issued invoices
Your employee payroll declarations
Your monthly VAT transactions
If anything doesn’t line up, they’ll flag it. And if you don’t respond in time or can’t justify the difference, you risk losing tax credits or being fined.
Many foreign-owned companies hit a wall here. They use overseas systems or file reports manually without aligning their accounting records, which causes mismatches. Even small errors, such as a misclassified expense or an unregistered invoice, can lead to more significant issues during a review.
Digital Filing and the Role of e-Reporting
In Georgia, nearly all tax submissions go through the Revenue Service portal. This platform is written in Georgian and adheres to strict formatting rules. Reports must be uploaded using templates that match the government’s system.
Manual submissions are no longer accepted for most entities
Files must be digitally signed using authorized credentials
Data must match your company registration, TIN, and reporting period
If you’re using an external accountant or managing this in-house without fluency in the Georgian language, mistakes are often made. That’s one of the reasons clients choose Gegidze: we bridge the language and compliance gap by managing everything locally in real-time.
Timelines You Can’t Miss
Most filings are monthly or annual, depending on your business type. Here are a few critical ones:
VAT returns: due monthly, typically by the 15th of the following month
CIT declarations: due by March 31 for the previous year
Payroll submissions: monthly, alongside salary disbursement
Annual financial reports: required for most companies, submitted in Q1
Miss one of these deadlines and you’re immediately on the radar. Repeated delays can affect your business credit, loan applications with Bank of Georgia or TBC Bank, and future licensing or visa processes.
What Happens If You Don’t Stay Compliant?
If your bookkeeping isn’t accurate or up to date, the consequences go beyond late fees. In Georgia, non-compliance can disrupt your business operations, damage your credibility with banks and partners, and make your company a target for audits. The bookkeeping requirements in Georgia are closely tied to the country’s tax enforcement system. Ignoring them doesn’t go unnoticed.
Penalties Start Small, Then Escalate
The Revenue Service doesn’t give much breathing room. If you miss a tax filing or submit incorrect information, you’re likely to face:
Fixed fines for late submissions (VAT, CIT, payroll reports)
Daily penalties if errors aren’t corrected promptly
Suspension of tax benefits, like VAT credits or deferred tax on retained profits
Blocking of taxpayer accounts, especially if there’s a history of missed deadlines
These aren't hypothetical. Companies that delay VAT filings by even a few days can end up paying hundreds in avoidable fines. And once you're flagged, every subsequent report is watched more closely.
Loan Applications Can Get Rejected
If you plan to apply for financing through Bank of Georgia, TBC Bank, or any private lender in the country, your financial statements and tax history will be reviewed first. If they find inconsistencies or, worse, missing reports, your application won’t move forward, regardless of your revenue or market potential.
Bookkeeping errors also reduce investor trust. Whether you’re pitching to a local angel investor or working with an international partner, clean financials are your proof of business health. If your numbers can’t be verified, it doesn’t matter how impressive your pitch deck looks.
You Could Lose Your Tax Status
Georgia offers attractive tax regimes for small and micro businesses, but they’re not automatic or guaranteed. If your company underreports income, fails to maintain records, or misses key filings, the IRS can revoke your tax status. That means you lose your reduced tax rate and return to standard corporate tax rules, with higher obligations and stricter reporting.
This risk is even more serious for foreign-owned companies. If your cross-border transactions aren’t recorded properly, customs documents and VAT filings won’t match. That can lead to shipment delays, frozen tax reclaims, and your company being placed on a compliance watchlist.
Poor Bookkeeping Can Trigger a Full Audit
Once flagged for non-compliance, the next step is often an audit. In Georgia, audits are selective but thorough. Auditors request full access to:
Accounting records (in Georgian)
Source documents (contracts, invoices, receipts)
Bank statements
Internal transaction logs
Employee and payroll records
If your records don’t hold up, penalties can be applied retroactively, and in some cases, the audit results are shared with financial institutions or industry regulators.
How Gegidze Helps You Avoid These Risks
Most companies don’t fail intentionally; they fail because they lack knowledge of the rules or don’t have the necessary local support to follow them. At Gegidze, we work with companies across various industries to ensure their bookkeeping in Georgia is not only compliant but also audit-ready.
We help you:
Set up the right reporting structure from day one
Keep monthly VAT and payroll records in sync with filings
Respond to inquiries from the Revenue Service quickly and accurately
Avoid red flags that lead to audits or tax reclassification
With us, you don’t just avoid penalties, you gain the confidence to grow, apply for loans, and build long-term partnerships with banks, suppliers, and investors in Georgia.
Industry-Specific Bookkeeping Needs in Georgia
Not all businesses in Georgia face the same bookkeeping challenges. The core requirements remain consistent: accurate records, timely filings, and proper documentation; however, the day-to-day accounting demands can vary significantly depending on your industry. If you're in logistics, construction, e-commerce, or launching a startup in Georgia, your bookkeeping setup should reflect how you operate, not just what the law requires.
This is where many businesses encounter difficulties. They use one-size-fits-all accounting templates that don't match their transaction flow. At Gegidze, we tailor bookkeeping systems based on the sector you’re in, so you stay compliant and in control.
Logistics and 3PL Companies in Georgia
If you’re managing a 3PL company in Georgia, you’re likely handling high volumes of cross-border transactions. This creates specific bookkeeping needs:
Tracking import/export documentation
Recording customs, VAT, and duties accurately
Reconciling client billing with transport costs
Handling advance payments and delayed deliveries
You need a clear separation of client funds, third-party vendor payments, and your revenue. If that isn’t appropriately structured in your books, your VAT filings won’t line up, and that can stall everything from tax returns to customs clearance.
Construction and Commercial Projects
Construction businesses face constant movement: contractor payments, equipment leases, staged invoices, and tight cash flow cycles. In Georgia, this complexity makes bookkeeping more than a formality.
Key challenges include:
Managing multi-phase contracts with advance and progress payments
Tracking expenses by project code or site
Recording subcontractor compliance for tax reporting
Handling withholding tax on service payments
Construction companies are also more likely to be audited, especially if their reported expenses don’t align with declared income. Clean, project-based bookkeeping is your first layer of protection.
E-Commerce and Digital Services
Running an online business out of Tbilisi or Batumi? Whether you’re selling physical products or digital subscriptions, your bookkeeping in Georgia must capture:
Payment gateway data (Stripe, PayPal, local platforms)
Sales across borders with proper VAT treatment
Integration with inventory systems (if applicable)
Monthly reconciliation between orders and bank deposits
Many e-commerce founders rely on automated platforms, but they often overlook the fact that Georgian tax authorities still require local documentation. This means providing digital invoices in Georgian and translated financial reports upon request.
Startups and Tech Companies
Startups often defer finance until it’s too late. But in Georgia, even if you’re pre-revenue, you’re still expected to maintain your books from the start. This is especially important if:
You're receiving grant funding or seed investment
You're planning to apply for business loans in Georgia.
You're paying remote teams or freelancers abroad.
You’ll also need to account for intellectual property valuation, R&D costs, and deferred revenue if your business model includes subscriptions or pre-sales.
How to Choose a Bookkeeping Provider in Georgia
Finding a bookkeeping provider in Georgia isn’t difficult. Finding one that understands how to keep your business compliant, audit-ready, and financially transparent is the real challenge. Many foreign companies assume any accountant will do, but the wrong partner can cost you more in corrections, fines, and lost opportunities than you’d ever spend on a quality service.
Start by asking the right questions. Do they understand your business model? Can they align your bookkeeping with Georgian tax law? Have they worked with foreign-owned entities, startups, or third-party logistics (3PL) companies in Georgia before? If they hesitate to answer or rely on vague templates, you’re likely to receive a cookie-cutter service that won’t withstand local scrutiny.
A good provider will go beyond monthly numbers. They’ll track how your VAT filings, payroll submissions, and cross-border transactions align with your real activity. They’ll organize your books not just for tax season, but for business planning, loan applications, and investor reporting. They’ll also speak your language, both literally and financially.
You also want to know what tools they use. Are they using locally approved accounting platforms? Can they integrate with Bank of Georgia systems or payroll software? Do they provide reports in both English and Georgian when needed? These are practical details that make a big difference during an audit or when working with Georgian institutions.
Finally, look for transparency. You should know exactly what’s included in the service, how communication will work, and what happens if your business scales. The best partners will help you establish the proper accounting foundation from the outset and adapt it as your business evolves.
Why Foreign Companies Trust Gegidze with Their Bookkeeping
At Gegidze, our focus is on making it easy for companies to operate confidently in Georgia without encountering compliance issues. We know that foreign companies need more than just local accounting: they need someone who understands both Georgian regulations and international business expectations. That’s the gap we fill.
We don’t offer one-size-fits-all packages. Instead, we assess your business structure, industry, reporting obligations, and growth plans. Then we build a bookkeeping process that matches exactly what you need. Whether you’re a startup, a logistics provider, a construction firm, or an international company opening a local branch, we tailor everything, from chart of accounts setup to tax submission scheduling.
We work in Georgian and English, and we prepare reports in both languages. Our team stays up to date with changes in Georgian tax law, so you never face unexpected new requirements or filing deadlines. And if you ever need help responding to the Revenue Service or preparing for an audit, we’re already one step ahead, with organized documentation and accurate records ready to go.
For clients working with banks such as TBC or the Bank of Georgia, we also assist in preparing financial statements that meet local lending criteria. This includes revenue breakdowns, tax histories, and explanations that provide lenders and investors with confidence in your numbers. We make sure your financial story is clear, consistent, and defensible.
With Gegidze, you’re not outsourcing your accounting to a faceless firm. You’re building a long-term relationship with a team that understands the real cost of non-compliance and how to avoid it. We don't just keep your books, we help protect your business.
Frequently asked questions (FAQ)
What bookkeeping records are legally required in Georgia?
You need to maintain invoices, contracts, payroll reports, bank statements, tax filings, and supporting documentation for all transactions. These records must be organized, accurate, and, in most cases, translated into Georgian.
