Monthly accounting that keeps your Georgian company compliant

What does “monthly accounting” actually mean in Georgia?

Every active Georgian company — LLC or Individual Entrepreneur — files monthly tax declarations through the Revenue Service’s RS.ge portal^[2]. Skipping a month is not an option, even at zero activity: a nil declaration is still required.

The recurring filings include:

• Monthly profit declaration (LLCs). Reports distributed-profit events and any deemed-distribution transactions for the month. Zero-activity months are nil declarations.
• Monthly PIT declaration (IEs).Reports the month’s business income (or quarterly turnover for Small Business Status holders).
• Monthly VAT declaration for VAT-registered entities. Includes input VAT reclaim, output VAT, and the net payable.
• Monthly payroll declaration if the entity employs staff. Withholds 20% PIT and the 2 + 2 + 2 pension contributions for Georgian-citizen employees.
• Quarterly turnover declaration (SBS holders).The 1% (or 3%) on accumulated quarterly turnover.
• Annual income tax return (LLCs and IEs).Filed in Q1 of the following year.
• Annual financial statements (LLCs).IFRS for SMEs typically; required for the LLC’s own books and any audit obligation.

What is the RS.ge taxpayer portal and why does it matter?

RS.ge is the Revenue Service of Georgia’s single-source-of-truth taxpayer portal^[2]. Every Georgian tax filing happens through it; printed paper rarely moves. The portal is in Georgian (with limited English support); it integrates with Georgian banks for direct tax-payment debits; and it issues every tax-residency certificate the founder will ever need.

A foreign founder cannot easily run RS.ge themselves unaided. The portal’s primary language, the tax-classification taxonomy, and the formatting conventions all assume Georgian-language familiarity. We run the portal on the founder’s behalf with appropriate authorisation from the founder.

How does VAT actually work for a Georgian company?

The standard Georgian VAT rate is 18%^[1]. Registration is mandatory for entities with rolling 12-month turnover above 100,000 GEL; voluntary registration is also available below the threshold.

The most common cross-border scenarios:

• Cross-border B2B services. Most digital services to a foreign B2B client are subject to the reverse-chargemechanism — the Georgian invoice is issued without Georgian VAT, and the client’s jurisdiction applies its own domestic VAT under reverse- charge rules. The Georgian entity declares the supply but applies a 0% rate.
• Cross-border B2C digital services.The client’s jurisdiction may impose its own VAT obligations on the Georgian supplier — particularly EU consumers under the EU’s OSS scheme. Volume-based registration thresholds apply.
• Domestic Georgian sales. Standard 18% VAT applies on goods and services to Georgian-resident clients.

VAT is the area most foreign founders stumble in initially. A monthly review by a Georgian accountant prevents 95% of common VAT errors.

What about payroll — what should foreign founders expect?

Georgian payroll is administratively cheap compared to most European jurisdictions. The mechanics:

• 20% Personal Income Tax withheld on gross salary.
• 2% pension contribution withheld from employee, 2% added by employer, 2% added by the state — for Georgian-citizen employees.
• No social security (in the conventional EU sense — pension contributions are the closest equivalent).
• No mandatory health insurance (employees handle this privately).
• Monthly payroll declaration on RS.ge; no separate payroll provider needed.

A founder-director paying themselves a 1,500 USD/month salary nets approximately 1,200 USD/month after taxes and pension contributions, with the company bearing roughly 1,560 USD of total cost. The all-in payroll burden is low.

How does the year-end close work?

For a foreign-owned LLC, the annual close in Q1 of the following year covers:

1. Reconciliation of all bank accounts to the year’s books.
2. Identification of any deemed-distribution events not previously declared.
3. Accrual adjustments (revenue earned but not yet invoiced; expenses incurred but not yet booked).
4. Annual financial statements per IFRS for SMEs.
5. Annual income tax return on RS.ge.
6. Filing of statutory financials with the Service for Accounting, Reporting, and Auditing Supervision (SARAS) where applicable.

For an Individual Entrepreneur (with or without SBS), the annual close is dramatically simpler — typically a single income tax return summarising the year’s monthly declarations.

What does monthly accounting actually cost?

Indicative pricing for a foreign-owned company in 2026:

• Individual Entrepreneur with Small Business Status, low transaction volume: 50–80 USD/month.
• Standard IE or small LLC, ≤50 transactions/month: 80–150 USD/month.
• LLC with 1–3 employees and VAT registration: 150–300 USD/month.
• LLC with 5+ employees and high transaction volume: 300–600 USD/month.
• Annual financial statements: 200–500 USD typically included in monthly retainer.

End-to-end, a typical foreign-founder LLC runs annual accounting cost between 1,500 and 3,500 USD — substantially cheaper than a comparable EU or US accounting service.