Invalid VAT issue in Georgia

[fce0ea4b]

Hello,

I have an issue, it's writing every time that my VAT is not validated, and the VAT that I'm submitting is my personal ID, so I checked it with the Revenue Service of Georgia, and they confirmed that VAT should be my personal ID, because I'm an Individual, not the business. So, the VAT is different from the personal number only if the person represents a sole proprietorship or business entity. Still, when you're an Individual Entrepreneur then your VAT is the same as your personal ID.

I'd like to point out that I'm an Individual and double-check the information with Georgian officials on your side as well.

I appreciate any help you can provide because I can't open the ticket myself.

[759e32fa · Accepted solution]

Hi Lana,

Thank you for reaching out to us. I shared your request with our team and one of our agents will reach out to you via a support ticket to assist you further. You can access your support tickets here.

[fce0ea4b]

Thank you!

[14e52bfb]

Hello, dear Upwork community.
My question is about the VAT ID and the VAT rate in Georgia. My business status is Micro Business. My Turnover is less than 30,000 Gel (approximately $11,000). According to Georgian tax legislation, I am not eligible to become a VAT taxpayer - as a Micro Business. Why am I being charged VAT if it is against the law?

[ArjayM]

Hi Evgeniia,

Thank you for reaching out to us here in the Community. Please know that Georgia requires Upwork to collect value-added tax, or VAT, and remit the tax to the government of Georgia if we do not have a valid VAT ID on file for you. VAT is a tax on goods or services, including our services to you, and remit means to send money for a payment.

In Georgia, the VAT rate is 18% of the cost of the service being taxed. For example, if you pay $100 USD in freelancer service fees, you will pay $18 in tax, for a total of $118. You’ll see the estimated amount of tax on your invoices and Transaction History.

If you provide a valid VAT ID to Upwork, we will not have to collect this tax from you. You can enter or edit your VAT ID in your account’s Settings > Tax Information.

 Please visit this help article for more details.