Crypto in Georgia: Legal and Tax Framework


Cryptocurrencies (crypto-assets) have emerged as a result of internet development, technological innovations, and the need for secure, fast, and cheap transfer, storage, and accounting of information. At the same time, crypto has provided a platform for new ways of speculations, financial crimes, and the possibility to receive illicit income securely. All of this has triggered the need to develop a modern legal and tax framework, which will keep up with the technology, the opportunities it offers as well as the threats that it may pose.

  1. Activities related to cryptocurrency are not regulated by the Georgian legislation;
  2. NBG does not regulate digital currency in Georgia;
  3. Crypto is not a legal tender in Georgia;
  4. Crypto bears legal and financial risks for the users.

Definition of Crypto-Assets

It is noteworthy that Georgia still does not have a separate law on cryptocurrencies. At the same time, the Minister of Finance of Georgia has issued a public ruling N201 (Ruling N201) of 28 June 2019, which is the sole normative act (bylaw) of Georgia determining in detail what the crypto-assets are and interpretation of tax implications related to them.

A bit more than the status quo

Before moving on to the next topics, we would like to note that as of writing this article, Georgian legislators have not regulated and the Revenue Service of Georgia has not yet issued any guidance on the taxation of the majority of crypto-currency related operations. The sole guidance which exists at our disposal is the above-mentioned Ruling N201. Based on that Ruling, the position of the Ministry of Finance can be summed up as follows:

  • (i) not VAT taxable when the recipient is registered outside of Georgia, and it does not have a managing place or permanent establishment in Georgia to which receipt of service is related;
  • (ii) VAT taxable, when the recipient is registered in Georgia, or it has a managing place or permanent establishment in Georgia to which receipt of service is related.
  • (i) the purchase, alienation, and exchange of cryptocurrency is VAT-exempt;
  • (ii) mining is not subject to VAT (as service recipients are unidentifiable).

Learn More about the Legal Framework of Cryptocurrency in Georgia

LTA is a boutique firm assisting clients worldwide with their tax/estate planning strategies. Their main field of focus is helping non-residents to enjoy the Georgian legal and tax system, including help with legal/tax and accounting aspects.



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