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NEWS

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Introducing Environmentally Friendly Communal Infrastructure in Mtskheta-Mtianeti Region

22-May-2018

Introducing Environmentally Friendly Communal Infrastructure in Mtskheta-Mtianeti Region

We are working with the United Water Supply Company of Georgia (UWSCG) to introduce environmentally friendly communal infrastructure in the Mtskheta-Mtianeti region of Georgia. PMCG, as part of a consortium led by P2M Berlin, is collaborating with the UWSCG to improve c...

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PMCG and PMC Research Open Call for Policy Papers

16-May-2018

PMCG and PMC Research Open Call for Policy Papers

PMC Research has launched a project entitled “Public Policy Discourse and Dialogue Platform – 2018” targeted at creating a platform to stimulate constructive and systematic policy debates and to establish cooperative practice among different political and social groups ...

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Supporting Central Asian Countries to Enhance Tourism Sector

14-May-2018

Supporting Central Asian Countries to Enhance Tourism Sector

We are collaborating with five Central Asian countries to develop their respective tourism industries, a forward step that will ultimately contribute to their economic development and growth.This cooperation is part of USAID’s Competitive Trade and Jobs (CTJ) Activity i...

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Hosting Sri Lankan Delegation to Share Positive Experience of Introducing Economic Reforms

03-May-2018

Hosting Sri Lankan Delegation to Share Positive Experience of Introducing Economic Reforms

On April 23-25, PMCG hosted an official delegation from Vavuniya, Sri Lanka to share Georgia’s successful experience of implementing economic reforms in e-governance and public service. The study tour comprised presentations about steps toward, and ways of, introdu...

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Parliamentary Oversight in Georgia: Plans and Prospects

16-Apr-2018

Parliamentary Oversight in Georgia: Plans and Prospects

On April 13, a presentation of the project “EU Support to Parliamentary Oversight of the Security Sector” was held at the Parliament of Georgia.The Ambassador of the European Union to Georgia, H.E. Janos Herman, Chairman of the Parliament of Georgia, Mr. Irakli Kobakhid...

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Contributing to the Development of Simplified Financial Accounting and Reporting Standards for Micro, Small and Medium Enterprises

03-Apr-2018

Contributing to the Development of Simplified Financial Accounting and Reporting Standards for Micro, Small and Medium Enterprises

Some of the prerequisites of strong and transparent micro, small and medium enterprises (MSMEs) are a favorable business environment, competence, skills, entrepreneurial culture and access to finance.Limited access to finance remains one of the main obstacles to growth ...

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Sharing Experience of Transforming Economies with George Washington University Students

27-Mar-2018

Sharing Experience of Transforming Economies with George Washington University Students

We had the pleasure of hosting a delegation from George Washington University (GWU) with whom we shared PMCG’s experience in transforming economies and changing institutions on March 14.Aleksi Aleksishvili, CEO and Chairman at PMCG, delivered a presentation to around 20...

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EU-funded Projects Aiming to Show Everyone is Employable

22-Mar-2018

EU-funded Projects Aiming to Show Everyone is Employable

On March 15, the Delegation of the European Union to Georgia, together with its partner institutions - the Ministry of Education and Science and the Ministry of Labor,Health and Social Affairs - presented the results and achievements of four EU-funded grant scheme proje...

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Facilitating business linkages between SMEs and MNCs in Georgia

21-Mar-2018

Facilitating business linkages between SMEs and MNCs in Georgia

The official launch of a new pilot project - Supporting the Growth of Georgia’s Small and Medium-Sized Enterprises under the Good Governance Fund (GGF) was held on March 14.The initiative aims to strengthen linkages between small- and medium-sized enterprises (SMEs) and...

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Discussing Destination Marketing Management Priorities with Destination Management Organizations from Imereti and Kakheti

07-Mar-2018

Discussing Destination Marketing Management Priorities with Destination Management Organizations from Imereti and Kakheti

On March 1, we hosted some Destination Management Organizations (DMOs) from Imereti and Kakheti with whom we discussed destination marketing management priorities. The working meeting was held as part of the World Bank project - Tourism Marketing, Promotion, Online Cove...

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PUBLICATIONS

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Issue 102: Higher and Vocational Education, 2013-2017

03-May-2018

Issue 102: Higher and Vocational Education, 2013-2017

High-quality education is one of the main determinants of economic growth. According to the “Government Program 2016-2020”, education is one of the main priorities for the Government of Georgia. Since 2013, the allocated budget of the Ministry of Education and Sciences of Georgia...

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101: Georgia in International Rankings

05-Mar-2018

101: Georgia in International Rankings

Positions in international rankings are an important indicator of how a country is performing with regard to its economic, social and political environment. In this bulletin, Georgia’s positions in international rankings and their dynamics will be reviewed based on recent data. ...

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100: Georgian Economy - Overview, 2007-2017

16-Jan-2018

100: Georgian Economy - Overview, 2007-2017

The 100th edition of Economic Outlook and Indicators happily coincides with PMCG’s 10-year anniversary. Through the last decade, Georgia’s economic indicators have fluctuated substantially. In this edition, we present the dynamics of development for this period, and also analyze ...

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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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