Exemption from Import Tax
Exemption can be deductible or non-deductible
VAT exemption

Exemption from import duties.

• Import of goods aimed at clearing of result from disaster and catastrophe, as well as humanitarian aid;
• Import of the goods considered by grant agreement according to the decree of President of Georgia;
• Import of the goods that are funded by grants or governmental authorities of a foreign country and/or by a preferential credit issued by an international organization that comprises at least 25 per cent of grant element. The Ministry of Finance of Georgia will calculate grant element in compliance with the resolution of the Parliament of Georgia;
• By an private person: Import of food stuff totally weighing up to 30 kg and with total cost up to GEL 500 of Groups 02, 04, 06−12, 15−21 and headings 0302−0307, 2201−2202 of National Commodity Nomenclature for Foreign Economic Activity once per calendar day (including mail deliveries), that are not intended for economic activities; Import of goods totally weighing up to 30 kg with total cost up to GEL 500 prescribed by Groups 28-97 of National Commodity Nomenclature for Foreign Economic Activity once per 30 calendar days that are not intended for economic activities; In case of air freight import per one calendar day and in other cases per 30 calendar days of 400 pcs. cigarettes or 50 pcs. cigars or 50 pcs. cigarillos or 250 gram other tobacco products (except for tobacco raw stock) or import within this limit quantity of tobacco products listed in this sub-item with total weight of 250 gram; import of 4 liters of any type of alcoholic drinks; Import of goods amounting to GEL 15 000 of groups 28-97 (except for group 87) of Foreign Economic Activity National Commodity Nomenclature by an individual entering Georgia after staying abroad for over each 6-month period that are not intended for economic activities, and import of goods (a vehicle, refrigerator, PC and TV per family) additionally intended for private use by a diplomatic official caused by a rotation business trip from Georgian diplomatic representation in a foreign country or consulate establishment; import of goods (including furniture, household items, a vehicle per family) not intended for economic activities when entering Georgia for permanent residence (that is verified by an appropriate document issued by the Ministry of Justice of Georgia in compliance with the prescribed method); In case of mail service delivery import of goods totally weighing under 30 kg to the amount of up to GEL 300 of Groups 28-97 of Foreign Economic Activity National Commodity Nomenclature that are not intended for economic activities as well as import of 400 pcs. of cigarettes or 50 pcs. of cigars or 50 pcs. of cigarillos or 250 gram of other tobacco products (except for tobacco raw stock) or total weight of 250 gram of tobacco products listed in this sub-item within this limit quantity; and import of 4 liters of any type of alcoholic drinks; In case of air freight import of goods totally weighing under 30 kg to the total amount of up to GEL 3 000 of Groups 28-97 Foreign Economic Activity National Commodity Nomenclature that are not intended for economic activities;
• Import of baby food products and diabetic food products that are marked as such for wholesale and retail supplies; import of X-ray films, insulin syringes (needles), glucometers, diagnostic testing systems;
• Import of goods intended for on-board delivery for making international air flights and international sea voyages;
• Import of plants and equipment, vehicles, spare parts and materials intended for oil and gas operations implementation prescribed by the Georgian Law “Referring to Oil and Gas”;
• Confiscated, abandoned, ownerless and turned into state property goods and/or vehicles that in compliance with the prescribed method of the Georgian legislation have been transferred into the state disposal or ownership;
• Import of tobacco products and/or raw stock before January 1, 2012;
• Import or temporary admission of private use items and household goods intended for private use of foreign nationals employed in oil and gas searching and mining works (including family members living with them);
• Temporary admission of goods to Georgia to ensure fulfillment of liabilities prescribed by Georgian international agreements, namely Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines construction;
• Temporary admission of goods fully exempt by the Tax Code;
• Import or temporary admission of the goods that are intended for the official use by foreign diplomatic representations and organizations given the same status, for private use by representation diplomatic and administrative-technical personnel (including family members living with them) the way this exemption is prescribed by appropriate international agreements of which Georgia is a participant;
• Import of property of Georgian diplomatic representations in foreign countries.
• Commodity operations applied towards goods (except goods import and temporary admission prescribed by this paragraph) in compliance with the requirements stipulated by this Code as well as placing goods in a free trade point;
• Import of goods produced in a free industrial zone from a free industrial zone;
• Import of returned goods;

Georgian goods (except for processed goods) exported from the Georgian economic territory, provided they have been identified, may be returned within 3 years of declaration without paying import duties. In addition import duty payment exemption prescribed by this paragraph is allowed only in case the goods have been returned to the Georgian economic territory in the same condition as they were by their export from the Georgian economic territory;

• In case of postal delivery (except for cases prescribed by this paragraph’s sub-para “d.f”) import of goods totally weighing under 30 kg to the amount of up to GEL 300 of Groups 28-97 of Foreign Economic Activity National Commodity Nomenclature as well as import of 400 pcs. of cigarettes or 50 pcs. of cigars or 50 pcs. of cigarillos or 250 gram of other tobacco products (except for tobacco raw stock) or total weight of 250 gram of tobacco products listed in this sub-item within this limit quantity; and import of 4 liters of any type of alcoholic drinks;
• Import of goods designated by headings and codes 1704 90 510 00, 2207 10 000 00, 2501 00 310 00, 2501 00 510 00, 2506, 2507, 2508, 2509, 2511, 2522, 2524, 2525, 2526 (except for 2526 20 000 00), 6805 20 000 00 and 6805 30 800 00 of Foreign Economic Activity National Commodity Nomenclature;
• Electric motor vehicles designated by heading 8703 of Foreign Economic Activity National Commodity Nomenclature.
• Note: provided that the quantity of alcoholic drinks and/or tobacco products imported via mail service delivery exceeds limit amounts prescribed by sub-para “d.f” and “n” of this paragraph exemption from import duties prescribed by the same paragraph will be applied within the framework of the above limit amount of the goods.

Excise exemption can be deductible or non-deductible

Exemption of operation with right of deduction means that the operation is not subject to excise charge (is not taxed) and right of deduction is exercised. Exemption of operation without right of deduction means that the operation is not subject to excise charge (is not taxed) and right of inclusion is not exercised.
Following are exempt from excise without right of deduction:

• In case of air freight import per one calendar day and in other cases per 30 calendar days by an private person of 400 pcs. cigarettes or 50 pcs. cigars or 50 pcs. cigarillos or 250 gram other tobacco products (except for tobacco raw stock) or import within this limit quantity of tobacco products listed in this sub-item with total weight of 250 gram; import of 4 liters of any type of alcoholic drinks;
• In case of postal service delivery import of 400 pcs. of cigarettes or 50 pcs. of cigars or 50 pcs. of cigarillos or 250 gram of other tobacco products or total weight of 250 gram of tobacco products listed in this sub-item within this limit quantity; and import of 4 liters of alcoholic drinks;
• Fuel in the standard tank of a person’s vehicle, by which the person is entering Georgia, that is connected from structural and technological views with engine power feeding system;
• Import of private use items and household goods intended for private use of foreign nationals employed in oil and gas searching and mining works (including family members living with them);
• Import of the goods that are intended for the official use by foreign diplomatic representations and organizations given the same status, for private use by representation diplomatic and administrative-technical personnel (including family members living with them) the way this exemption is prescribed by appropriate international agreements of which Georgia is a participant;
• Import of goods intended for on-board delivery for making international air flights and international sea voyages;
• Import of oil products intended for oil and gas operations implementation prescribed by the Georgian Law “Referring to Oil and Gas”;
• Import of additive, solvent, antiknock (2707 10 100 00 – 2707 50 900 00 (except for 2707 40 000 00); 2707 99 800 00; 271220; 2902 11 100 00– 2902 30 900 00; 2905 11 000 00– 2905 16 800 00; 3811 11 100 00– 3811 90 000 00; 3814 00 100 00– 3814 00 900 00), unless they are used for excise goods production, when importing the above mentioned goods excise will be paid and upon submission of documentation, prescribed by the order of the Minister of Finance of Georgia, that verifies that the goods were not used for excise goods production a tax authority will return the paid excise amount to the taxpayer;
• Import of a vehicle intended for private use by a diplomatic official caused by a rotation business trip from Georgian diplomatic representation or consulate establishment in a foreign country or consulate establishment;
• Import of goods (including furniture, household items, a vehicle per family) not intended for economic activities when entering Georgia for permanent residence (that is verified by an appropriate document issued by the Ministry of Justice of Georgia in compliance with the prescribed method);
• Import of a motor car not intended for economic activities when entering Georgia for permanent residence (that is verified by an appropriate document issued by the Ministry of Justice of Georgia in compliance with the prescribed method);
• Import of returned excise goods;

Georgian goods (except for processed goods) exported from the Georgian customs territory, provided they have been identified, may be returned within 3 years of declaration without paying import duties. In addition import duty payment exemption prescribed by this paragraph is allowed only in case the goods have been returned to the Georgian customs territory in the same condition as they were by their export from the Georgian customs territory;

• Import of Georgian diplomatic representations property abroad;
• Electric motor vehicles designated by goods heading 8703 of Foreign Economic Activity National Commodity Nomenclature.

Note: provided that the quantity of alcoholic drinks and/or tobacco products imported via postal service delivery exceeds limit amounts (400 pcs. of cigarettes or 50 pcs. of cigars or 50 pcs. of cigarillos or 250 gram of other tobacco products or total weight of 250 gram of listed tobacco products within this limit quantity; and import of 4 liters of alcoholic drinks) exemption from excise will be applied within the framework of the above limit amount of the goods.

Following are exempt from excise with right of deduction:

• Excise goods export only over the reporting period for which a taxpayer submits the following documents to a tax agency:
• Tax invoice and a document certifying payment of the excise amount specified in the tax invoice to a supplier (provided that other excise goods (raw stock) produced by another person have been used for production of the exported excise goods);
• Goods declaration related to goods export release;
• Delivery of Georgian goods to a free trade point for sale.

VAT Exemption

Exemption can be deductible or non-deductible.

• Exemption of operation with right of deduction means that the operation is not subject to VAT charge (is not taxed) and right of deduction is exercised.
• Exemption of operation without right of deduction means that the operation is not subject to VAT charge (is not taxed) and right of deduction is not exercised.

Import or temporary admissions of the following goods are exempt from VAT without right of deduction:

• Import of national and/or foreign currency (except for those used for numismatic or collection purposes), securities;
• Import of gold and gold bars to be transferred to the National Bank of Georgia;
• Import of treasures, real property turned into state ownership, the income gained from the sale of which will be directed to the budget;
• Import of movable property turned into state ownership;
• Import of goods except for import of goods from a free industrial zone
• By an physical person:
• Import of food stuff totally weighing under 30 kg with total cost under GEL 500 of Groups 02, 04, 06−12, 15−21 and goods headings 0302−0307, 2201−2202 of Foreign Economic Activity National Commodity Nomenclature once per calendar day (including postal deliveries), that are not intended for economic activities;
• Import of goods totally weighing under 30 kg with total cost under GEL 500 prescribed by Groups 28-97 of Foreign Economic Activity National Commodity Nomenclature once per 30 calendar days that are not intended for economic activities;
• In case of air freight import per one calendar day and in other cases per 30 calendar days of 400 pcs. cigarettes or 50 pcs. cigars or 50 pcs. cigarillos or 250 gram other tobacco products (except for tobacco raw stock) or import within this limit quantity of tobacco products listed in this sub-item with total weight of 250 gram; import of 4 liters of all types of alcoholic drinks;
• Import of goods amounting to GEL 15 000 of groups 28-97 (except for group 87) of Foreign Economic Activity National Commodity Nomenclature by an individual entering Georgia after staying abroad for over each 6-month period that are not intended for economic activities, and import of goods (a vehicle, refrigerator, PC and TV per family) additionally intended for private use by a diplomatic official caused by a rotation business trip from Georgian diplomatic representation or consulate establishment in a foreign country;
• Import of goods (including furniture, household items, a vehicle per family) not intended for economic activities when entering Georgia for permanent residence (that is verified by an appropriate document issued by the Ministry of Justice of Georgia in compliance with the prescribed method);
• In case of postal service delivery import of goods totally weighing under 30 kg to the amount of up to GEL 300 of Groups 28-97 of Foreign Economic Activity National Commodity Nomenclature that are not intended for economic activities as well as import of 400 pcs. of cigarettes or 50 pcs. of cigars or 50 pcs. of cigarillos or 250 gram of other tobacco products (except for tobacco raw stock) or total weight of 250 gram of tobacco products listed in this sub-item within this limit quantity; and import of 4 liters of any type of alcoholic drinks;
• In case of air freight import of goods totally weighing under 30 kg to the total amount of up to GEL 3 000 of Groups 28-97 of Foreign Economic Activity National Commodity Nomenclature that are not intended for economic activities;
• In case of postal service delivery (except for the case of import by an individual) import of goods totally weighing under 30 kg to the amount of up to GEL 300 of Groups 28-97 of Foreign Economic Activity National Commodity Nomenclature as well as import of 400 pcs. of cigarettes or 50 pcs. of cigars or 50 pcs. of cigarillos or 250 gram of other tobacco products (except for tobacco raw stock) or total weight of 250 gram of tobacco products listed in this sub-item within this limit quantity; and import of 4 liters of any type of alcoholic drinks;

Note: provided that the quantity of alcoholic drinks and/or tobacco products imported via postal service delivery exceeds limit amounts prescribed by sub-items “d.f” and “n” of this paragraph exemption from import tax prescribed by the same paragraph will be applied within the framework of the above limit amount of the goods.

• Import of goods specified in codes 4801, 4802 55 and 4810 22 of Foreign Economic Activity National Commodity Nomenclature;
• Import of liquorice roots listed in goods H.S Codes 1211 90 980 00, natural uncleaned shellac listed in goods H.S Codes 1211 20 000 00, 1301 20 000 00 and 1301 90 000 00, and (capsules) specified in codes 1504 20, 1515 30, 1520 00 000 00, 1702 11 000 00, 3912 12 000 00, 3912 31 000 00, 7010 10 000 00, 7010 90 790 00 and 9602 00 000 00 of Foreign Economic Activity National Commodity Nomenclature;

Import of raw stock and substances listed in groups 28 and 29 of Foreign Economic Activity National Commodity Nomenclature intended for medical (pharmaceutical) purposes, pharmaceutical products (except for chewing gums) including vaccines listed in group 30 as per the list prescribed by the joint order (№1/N–№6 January 5, 2011) of the Minister of Health, Labour and Social Affairs of Georgia and Minister of Finance of Georgia

• Import of medical or veterinary products listed in codes 8419 20 000 00, 9001 30 000 00, 9001 40, 9001 50, 9018–9022 (except for 9019 10 900 00), 9025 11 200 00 and 9402 90 000 00 of Foreign Economic Activity National Commodity Nomenclature, perambulators listed in codes 8713 and 8714 20 000 00, X-ray films, insulin syringes (needles), medical purpose diagnostic testing systems, glucometers (that are registered by the Ministry of Labour, Health and Social Affairs of Georgia) and their testing systems;
• Import of goods listed in codes 0102 10, 0103 10 000 00, 0104 10 100 00, 0104 20 100 00, 0105 11, 0511 10 000 00, 0602 10, 2503 00, 2803 00, 3101 00 000, 3103–3105, 3808 91, 3808 92 and 3808 93 of Foreign Economic Activity National Commodity Nomenclature;
• Import of vehicles specified in code 8703 of Foreign Economic Activity National Commodity Nomenclature;
• Import of goods (books, magazines and newspapers, music) listed in codes 4901, 4902, 4903 00 000 00 and 4904 00 000 00 of Foreign Economic Activity National Commodity Nomenclature;
• Import or temporary admission of private use items and household goods intended for private use of foreign nationals employed in oil and gas searching and mining works (including family members living with them);
• Import of baby food products and/or baby hygiene products that are marked as such at delivery as per the list prescribed by the joint order (№2/N–№5 January 5, 2011) of the Minister of Labour, Health and Social Affairs of Georgia and the Minister of Finance of Georgia.

List of baby food products

Note:
1. The above listed products represent food products for under 12 month old babies (infants) that are marked as such by wholesale or retail supplies. The term “marked as such” means that according to the marking the minimum age limit of product use is less than 12 months.
2. Supplies and/or import of the listed 11-digit H.S Codes of Foreign Economic Activity National Commodity Nomenclature as well as herbal tea listed in goods headings 0811, 0909, 1211, 2106, products listed in goods headings 0403, 1905 and 2009 food products for under 12 month old babies (infants) that are marked as such by wholesale or retail supplies will be VAT exempt.

List of baby hygiene products

Note:
1. The above listed products represent hygiene products for babies aged from 0 to 3 years old that are marked as such by wholesale and retail supplies. The term “marked as such” means that according to the marking the minimum age limit of product use is less than 3 years old.
2. Supplies and/or import of the listed 11-digit H.S Code goods of Foreign Economic Activity National Commodity Nomenclature  – hygiene products intended for babies from 0 to 3 years old that are marked as such by wholesale or retail supplies will be VAT exempt.

• Import of diabetic bread that is marked as such at delivery;
• Import of goods listed in codes 8701 90 110 00 – 8701 90 500 00 of Foreign Economic Activity National Commodity Nomenclature intended for tractors; chassis, trunk, parts and equipment listed in codes 8706 00 190 00, 8706 00 990 00, 8707 90 100 00, 8707 90 900 00, 8708 10 900 00, 8708 29 100 00 – 8708 40 900 00, 8708 50 900 00 – 8708 70 100 00, 8708 80, 8708 91, 8708 92, 8708 93, 8708 94 and 8708 99 of Foreign Economic Activity National Commodity Nomenclature as well as goods listed in codes 8432 90 000 00 and 8433 90 000 00 of Foreign Economic Activity National Commodity Nomenclature;
• Import of natural gas for electricity generation (thermal power plants);
• Import of goods listed in appropriate codes 8802 11 100 00, 8802 12 100 00, 8802 20 100 00, 8802 30 100 00 and 8802 40 100 00 of Foreign Economic Activity National Commodity Nomenclature and/or goods prescribed for civil aviation by Foreign Economic Activity National Commodity Nomenclature;
• Import of excise stamps of the Ministry of Finance of Georgia;
• Import of agricultural pesticides and agrochemicals, agricultural seeding and planting materials as per the list approved by the Government of Georgia (Resolution 173 as of April 12, 2011).

Seeds and planting material:

Note:
Provided that the list specifies six-digit goods H.S Code or four-digit goods heading that means that the exemption is extended to all the goods of the subject H.S Code or heading.

Following operations performed for special purposes are VAT exempt without the right of deduction on the basis of laws, agreements and contracts:

• Import of plants and equipment, vehicles, spare parts and materials intended for oil and gas operations implementation prescribed by the Georgian law “Referring to Oil and Gas” as well as goods for implementation of oil and gas operations for investors and operation companies in compliance with agreements and/or licenses issued for oil and gas operations implementation prescribed by the above law;
• Import of goods funded by preferential credit issued by foreign countries and/or international organizations in compliance with Georgian international agreements ratified by the Parliament of Georgia for power industry sector rehabilitation;  
• Temporary import of goods to Georgia to ensure fulfillment of liabilities prescribed by Georgian international agreements, namely Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines construction;
• Temporary admission of goods entirely exempt by the Tax Code;
• Import of returned goods in compliance with the Tax Code requirements;
• Import of goods prescribed by grant agreements by grant issuing or recipient person;
• Import of goods aimed at disaster, accident and catastrophe elimination, as well as humanitarian aid to be transferred to the Georgian state and/or public organizations;
• Import or temporary admission of the goods that are intended for the official use by foreign diplomatic representations and organizations given the same status, for private use by representation diplomatic and administrative-technical personnel (including family members living with them) the way this exemption is prescribed by appropriate international agreements of which Georgia is a participant;
• Import of Georgian diplomatic representations property abroad.

Following are VAT exempt with the right of deduction:

• Goods re-export or export only for the reporting period within which the declaration related to goods re-export or export release was performed;
• Delivery of Georgian goods to a free trade point for sale and sale of goods in a free trade point;
• Import of goods intended for on-board delivery for making international air flights and international sea voyages;

Import of goods is VAT exempt with right of deduction in case the above is performed within the framework of international agreements ratified by the Parliament of Georgia and taken effect and in compliance with these agreements import of such goods is VAT exempt.