Small-business limits in Georgia, and what they do

One limit, three consequences

A small business in Georgia pays a low rate on its taxable income, and the law ties that rate to numbers. There are three, and each one does something different when you cross it.

• The annual limit of GEL 500,000 changes the rate for the rest of the year.
• Two years in a row over that limit end the status.
• GEL 100,000 of VAT-taxable supplies in twelve months in a row makes VAT registration mandatory.

This post gives each number with the article it comes from, in the Tax Code of Georgia as it stood on 15 October 2026. It is general information, not tax advice: check the law, or ask the Revenue Service, before you rely on it for a decision.

The annual limit: 1 percent, then 3 percent

Taxable income of a person with the small-business status is taxed at 1 percent. It is taxed at 3 percent if the gross income from the economic activity has exceeded GEL 500,000 (Article 90).

The 3 percent does not apply to the whole year. It applies from the beginning of the month in which the limit was exceeded until the end of that calendar year, and in that month it applies to the whole taxable income of the month. The next January you start again at 1 percent, on a new count.

The limit counts gross income received in a calendar year. Article 88(3) lets the Government determine types of income that are left out of it.

Two years over the limit end the status

The status is revoked if gross income exceeded GEL 500,000 in each of two calendar years (Article 89(2)(a)). The revocation takes effect from the beginning of the year that follows those two years. So income over the limit in 2025 and in 2026 means no small-business status from 1 January 2027, and a year that was over the limit once, followed by a year under it, does not end anything.

After the status ends, the general rules apply. For a natural person that means personal income tax at 20 percent of taxable income, unless the Code provides otherwise. The revocation is not retroactive: the months of the years in which you held the status stay taxed as small business.

Wine tourism and agro tourism operators: 700,000

For wine tourism operators and agro tourism operators the limit is GEL 700,000, not 500,000 (Article 90). These are persons granted that status by an ordinance of the Government of Georgia, under Article 8, points 37¹ and 37². Nothing in your registration or in an activity code proves it, so a tool that reads your rs.ge card cannot tell. You have to say so yourself.

VAT: 100,000 in any twelve months

A taxable person whose VAT-taxable supplies exceed GEL 100,000 during any 12 consecutive calendar months must apply for registration as a VAT taxpayer within 2 business days (Article 165). Supplies that are exempt from VAT are left out of the figure, apart from the exceptions the article lists.

Two things about this number. It is a rolling window of twelve months, not the calendar year, so it can be crossed in the middle of a year. And it counts supplies that are taxable for VAT, which is not always the same as your small-business gross income. Which of your income is VAT-taxable is a question about your own activity.

Other ways to lose the status

Article 89(2) names four more grounds besides the two years over the limit:

• your own application to the tax authority (the status then ends from the first day of the following month, Article 89(3¹));
• an activity that the Government has excluded under Article 88(2) (from the beginning of the calendar year);
• three or more fines in one calendar year for breaking the cash register rules (from the beginning of the calendar year);
• no longer meeting the condition of Article 88(1) (from the date that ground arose).

How Kvitiko shows the limits

The Taxes screen has a Turnover limits section under the year to date. It holds a row for the annual limit and, for a taxpayer who is not a VAT payer, a row for VAT registration.

Each row shows the limit, what you have used and what is left, a short plain hint, and one small link to the article. Years before your registration never appear: the VAT window starts in your registration month, and the annual limit counts from your first month. The annual limit warns about the two-year rule only when last year, after your registration, was over the limit, and then says from which 1 January the status would end. When your card names an activity that could belong to a tourism or wine operator, the section asks whether you are one, and uses 700,000 once you say yes.

With at least two complete months recorded, each row adds an estimate of when you would reach the limit at your average monthly pace. It says how many months it rests on, and it is an estimate: a single big payment moves it.

All figures come from the payments and the opening turnover recorded in Kvitiko, not from a read of rs.ge. What rs.ge shows is what counts.