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NEWS

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Supporting Tajikistan to Strengthen its Strategic Planning

15-Feb-2018

Supporting Tajikistan to Strengthen its Strategic Planning

We recently launched a project supporting the Department of Strategic Planning and Reforms of Tajikistan to strengthen its strategic planning and policy coordination and to ensure better integration of strategic decisions and current policies. PMCG will provide ins...

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Three New Grants to Support Georgian Municipalities to Promote Local Economic Growth

14-Feb-2018

Three New Grants to Support Georgian Municipalities to Promote Local Economic Growth

On February 7, three Georgian municipalities – Bolnisi, Gori, and Tbilisi - were selected to receive a total of around 1.4 mln euro of grant funding from the European Commission (EC). The decision followed a call for proposals from the local administrations of East...

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Georgia Ranked 5th in Open Budget Index Rankings

02-Feb-2018

Georgia Ranked 5th in Open Budget Index Rankings

Georgia has risen to 5th place in the Open Budget Index Rankings 2017 recently released by the International Budget Partnership. This achievement is a credit to the Government of Georgia, and numerous other parties. Indeed, PMCG has certainly made a notable contribution...

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Georgia as a Transit Hub and its Increasing Potential in the Implementation of the Belt and Road Initiative

25-Jan-2018

Georgia as a Transit Hub and its Increasing Potential in the Implementation of the Belt and Road Initiative

On January 25, at 10:30 am, PMC Research hosted a presentation and public discussion of the research findings “Georgia as a Transit Hub and its Increasing Potential in the Implementation of the Belt and Road Initiative”. The research aimed to highlight Georgia’s potenti...

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Meet Our New Executive Director

17-Jan-2018

Meet Our New Executive Director

We are delighted to welcome Tamar Japaridze to our team as our new Executive Director after the position was vacated by Olia Watt who moves on with our best wishes to the Georgian National Communications Commission (GNCC).Tamar brings with her an impressive 17 years of ...

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Contributing to Improving Tax Policy Analysis in Ethiopia and Ghana

16-Jan-2018

Contributing to Improving Tax Policy Analysis in Ethiopia and Ghana

We have recently launched a project with the purpose of conducting an external evaluation of the pilot program “Improving Tax Policy Analysis and Development in Partner Countries (TaxDev)”, which is being delivered by the Institute of Fiscal Studies (IFS).The project is...

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Ifo World Economic Survey (Third Quarter of 2017)

04-Dec-2017

Ifo World Economic Survey (Third Quarter of 2017)

The ifo Institute is one of the leading economic research institutes in Europe, and publishes its World Economic Survey (WES) on a quarterly basis. The Ifo World Economic Survey is designed to give an accurate picture of the current economic situation and forecasts f...

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Trainings Conducted as part of the “Civil Society Organizations Supporting Free Trade with Europe” Project

14-Nov-2017

Trainings Conducted as part of the “Civil Society Organizations Supporting Free Trade with Europe” Project

In September and October 2017, PMC Research Center conducted trainings and stakeholder meetings about value chain analysis methods in seven regions of Georgia. More specifically, the trainings were carried out for civil society organizations (CSOs) in Kakheti, Kvemo Kar...

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Supporting Georgian National Communication Commission to Advance its Business Processes

11-Oct-2017

Supporting Georgian National Communication Commission to Advance its Business Processes

PMCG has started assisting the Georgian National Communication Commission (GNCC) to improve its business processes, under the USAID HICD 2020 Activity. For the GNCC, it is vital to have well-structured business processes to be able to fulfil its mandate, which incl...

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Reviewing Anaklia Deep Sea Port Baseline Action Plan

10-Oct-2017

Reviewing Anaklia Deep Sea Port Baseline Action Plan

PMCG, together with Antea Netherlands, recently started working on a project designed to study the Baseline Contamination Rectification Commitment Action Plan of Anaklia Deep Sea Port (ADSP) before giving it their seal of approval. Before the construction of Anakli...

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PUBLICATIONS

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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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99: Tourism- January-September, 2017

13-Nov-2017

99: Tourism- January-September, 2017

  In 2017, compared to the corresponding period of 2016: • In the first three quarters, the number of tourists increased by 29%; in the third quarter, the proportion of tourists making up total international travelers reached its peak at 52.1%.• In the first three quarters...

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98: Development of the Agricultural Sector- January-June, 2017

07-Sep-2017

98: Development of the Agricultural Sector- January-June, 2017

  In the agricultural sector: In the last eight years, total production output has fluctuated between 7.8% and10.3% of gross domestic product In the first quarter of 2017, foreign direct investment amounted to negative US$0.3 mln In the first half of 2017, the volume o...

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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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