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Better Skills for Better Jobs – Developing Employment and Vocational Education System in Georgia

16-Nov-2018

Better Skills for Better Jobs – Developing Employment and Vocational Education System in Georgia

On November 15, the Delegation of the European Union to Georgia and the Government of Georgia summarized four years of cooperation aimed at developing the Employment and Vocational Education and Training (EVET) system in Georgia.The summary focused on highlighting the a...

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Sharing Georgia’s Successful Reforms with Ukrainian Delegation

14-Nov-2018

Sharing Georgia’s Successful Reforms with Ukrainian Delegation

On November 9, David Lezhava, Public Policy Sector Director at PMCG, delivered a presentation and shared Georgia’s experience of introducing economic reforms and innovations in the public sector to a delegation from Ukraine. “The focus was placed on the continuous and c...

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Chinese Academy for Fiscal Sciences Set for Cooperation with Tbilisi State University and Academy of the Ministry of Finance of Georgia

13-Nov-2018

Chinese Academy for Fiscal Sciences Set for Cooperation with Tbilisi State University and Academy of the Ministry of Finance of Georgia

On November 6, PMC Research organized a meeting between the Chinese Academy of Fiscal Sciences (CAFS) and Tbilisi State University (TSU), with the aim of introducing these two institutions to each other and discussing collaboration opportunities. As a result of the meet...

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PMCG Shortlisted to Support Tajikistan and Kyrgyz Republic to Improve Municipal Infrastructure

12-Nov-2018

PMCG Shortlisted to Support Tajikistan and Kyrgyz Republic to Improve Municipal Infrastructure

We are pleased to announce that we have been shortlisted by the European Bank for Reconstruction and Development (EBRD), as part of a consortium led by HPC AG, to implement its Municipal Infrastructure Programme in the Republic of Tajikistan and the Kyrgyz Republic.Our ...

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Hosting Delegation from China to Start Collaboration

08-Nov-2018

Hosting Delegation from China to Start Collaboration

On November 6-7, PMC Research hosted a delegation from China, comprising high-ranking officials from the Chinese Academy for Fiscal Sciences (CAFS). The aim of the visit was to discuss the prospects of future collaboration between the two institutions.During the meeting...

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Azerbaijan and Kazakhstan Make Significant Progress in the World Bank’s Doing Business Ranking 2019

05-Nov-2018

Azerbaijan and Kazakhstan Make Significant Progress in the World Bank’s Doing Business Ranking 2019

We congratulate the Governments of Azerbaijan and Kazakhstan with their countries’ substantial improvements in the World Bank’s Doing Business Ranking 2019. Azerbaijan has moved from 57th place in 2018 to 25th place, and is among the ten economies to have made the ...

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Georgia Rises to 6th Place in the World Bank’s Doing Business Ranking 2019

02-Nov-2018

Georgia Rises to 6th Place in the World Bank’s Doing Business Ranking 2019

We are pleased to share the news that Georgia has recorded an impressive rise in the World Bank’s Doing Business Ranking 2019. We would like to congratulate the Government of Georgia (GoG) on this success. In addition, we are glad to have played a part in this progress ...

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Assessing Safety of Sioni and Algeti Dams

01-Nov-2018

Assessing Safety of Sioni and Algeti Dams

  We recently launched a new project aiming to assess two dams in the Kakheti and Kvemo Kartli regions of Georgia. PMCG, as part of a consortium led by Temelsu, will assist state-owned company Georgian Amelioration LTD, which is under the supervision of the Minist...

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Campaign to Raise Awareness about EU Activities Aiming to Support Employment, Vocational Education and Training

29-Oct-2018

Campaign to Raise Awareness about EU Activities Aiming to Support Employment, Vocational Education and Training

We recently took part in an information campaign about the initiatives of the European Union (EU) to support employment and vocational education and training (EVET) sectors.As part of the campaign, PMCG, together with representatives of the Ministry of Education and Sci...

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New Study to Improve Access to Employment, Entrepreneurial and Educational Opportunities

26-Oct-2018

New Study to Improve Access to Employment, Entrepreneurial and Educational Opportunities

PMC Research recently launched a new applied research project entitled “The regional market assessment in Georgia using components of Smart Specialization” aiming to assess the private business sector in Tbilisi and five target municipalities within Kvemo Kartli and Sam...

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PUBLICATIONS

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Hotel Price Index (September, 2018)

15-Oct-2018

Hotel Price Index (September, 2018)

During October 2017 – September 2018 period, in Tbilisi the highest average prices of a room in a 3* and 4* hotels were recorded in December 2017, respectively 165 GEL and 293 GEL, the lowest prices were recorded in February 2018, respectively 124 GEL and 214 GEL. In September...

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Hotel Price Index (August, 2018)

17-Sep-2018

Hotel Price Index (August, 2018)

In August 2018, the hotel price index increased only by 0.01% compared to July 2018; In August 2018, the daily rates for standard double hotel rooms increased the most in Guria (7.6%), while the hotel prices decreased mostly in Samtskhe-Javakheti (-1.6%); In August 2018, the ...

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Hotel Price Index (July, 2018)

10-Aug-2018

Hotel Price Index (July, 2018)

In July 2018, the hotel price index increased by 2.7% compared to June 2018; In July 2018, the daily rates for standard double hotel rooms increased the most in Adjara(10.1%) and Samtskhe-Javakheti (5.9%), while the hotel prices decreased only in Tbilisi (-1.2%); In July, the...

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Support to Approximation of Georgian VAT Rules with EU VAT Legislation

26-Feb-2015
Start Date:
January, 2015
End Date: April, 2015
Region: Caucasus
Country: Georgia
Client: Ministry of Finance of Georgia
Origin of Funding: USAID/G4G

 

 

 

 






Project Description:

 

The objective of the project is to support the Ministry of Finance of Georgia (MoF) in gradual approximation of Georgian with EU legislation.

One of the priority areas of legal approximation under the Association Agreement is tax legislation, specifically value added tax (VAT). Policy and Management Consulting Group (PMCG) under the USAID / Governing for Growth in Georgia (G4G) project will develop recommendations in the VAT Approximation Action Plan for the Ministry of Finance of Georgia.

PMCG will collaborate with the MoF’s special working group and will conduct the following activities:

  • Comparative analyses of VAT Directive with the tax code provision on VAT and identify any discrepancies;
  • Prioritize the research results and the issues according to the criteria of feasibility and their impact on the private sector;
  • Organize and conduct discussions with the MoF’s working group and private sector representatives about complex VAT issues;
  • Support MoF to develop VAT Approximation Action Plan, ranking the tax code amendments according to priorities.


After clearly identifying the discrepancies in the comparative analysis, PMCG will explain the logic of provisions’ prioritization and their qualitative impact on private sector. As a result of the project, PMCG will provide a VAT Approximation Action Plan indicating the tax code amendments in order of priority.

 

Background Information:

Georgia and the European Union signed the Association Agreement (AA) on June 27, 2014. The Agreement offers Georgia a route to economic integration into the EU internal market, notably through establishing a Deep and Comprehensive Free Trade Area and constitutes a comprehensive ‘reform agenda’ for gradual approximation of Georgian legislation with that of the EU. One of the priority areas of legal approximation under the AA is the tax legislation and, in particular, the value added tax (VAT) related rules. The key EU legislation on VAT includes “Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax” (VAT Directive).

The Ministry of Finance (MoF) approached G4G with a request to provide technical assistance in analyzing the VAT Directive, prioritizing its provisions according to agreed criteria and developing recommendations on an approximation action plan. To support the process, MoF established the working group (WG) consisting of representatives from MoF’s Tax Policy Department, Revenue Service (RS) and the EU Twinning Project “Strengthening Administrative Capacity of the Georgian Revenue Service in Taxation” (EU Twinning Project). PMCG, as an implementing partner of G4G, will provide analytical support to the working group. It will prepare and bring issues to be discussed by WG members, collect feedback and lay down recommendations for legislative approximation. PMCG will also ensure the private sector’s participation in the VAT legislation review and conduct public-private consultations throughout the review process.



Follow the links below for more detailed information:

Simplification of Tax Code
USAID Georgia, Economic Prosperity Initiative – Assessment of Georgia-United Arab Emirates Double Taxation Treaty
Business Environment Improvement (BEI) Project in Kyrgyzstan
Governing for Growth in Georgia (G4G), by USAID





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