Subject to its special regimes, article 165 of the Georgian Tax Code requires a VAT registration application within two working days of exceeding GEL 100,000 in taxable transactions over twelve consecutive calendar months. The reference period is rolling; it is therefore not limited to the accounting year.
Calculating and paying VAT becomes mandatory from the transaction that causes the threshold to be exceeded, including that transaction. The registration application period is therefore not an additional period during which sales remain outside the system.
To monitor the threshold, a business would benefit from reconciling its sales history with the tax classification of each transaction. An annual total established at year-end may conceal an earlier breach over the rolling period. Identifying the triggering transaction then determines the starting point for tax treatment; it does not remove the need to examine exempt transactions that nevertheless count towards the threshold.
The threshold nevertheless requires transactions to be classified. Under paragraph 7, certain exempt transactions, including exports, enter the calculation; separate rules concern, in particular, producers of excise goods and fixed establishments. These situations must be checked before concluding that an activity below the threshold is free of all VAT obligations.