eCommerce Taxes in Georgia — 1% Small Business Status & rs.ge Setup — ონლაინ მაღაზია / online store
A transparent breakdown of online retail taxation in Georgia: 1% small business revenue tax status, VAT thresholds, and rs.ge registration.
When starting an online store in Georgia, taxation and legal setup are among the first questions new merchants face. Fortunately, Georgia has one of the most accessible and business-friendly tax regimes for individual entrepreneurs and small online retailers.
This guide explains how eCommerce taxation works in Georgia, the mechanics of the 1% small business status, and how to register on rs.ge.
1. Registering as an Individual Entrepreneur (IE)#
The initial step is registering as an Individual Entrepreneur at the Public Service Hall (Justice House):
- Registration is typically finalized within 1 business day.
- All you need is an ID card/passport and a local registration address.
- Upon registration, an account is automatically generated on the Revenue Service portal (rs.ge).
2. 1% Small Business Tax Status#
Under the Georgian Tax Code, an Individual Entrepreneur granted Small Business Status pays only 1% tax on total gross revenue:
- Turnover Limit: Annual revenue up to 500,000 GEL is taxed at the flat 1% rate (source: rs.ge).
- Filing Schedule: Declarations are submitted monthly through the rs.ge portal by the 15th of the following month.
- Minimal Accounting: Complex double-entry bookkeeping is not mandatory — merchants simply record monthly revenue.
3. Value Added Tax (VAT) Threshold#
The mandatory VAT registration threshold in Georgia is 100,000 GEL:
- If your rolling 12-month turnover remains below 100,000 GEL, VAT registration is not required.
- If turnover surpasses 100,000 GEL, standard VAT registration applies.
4. Connecting Tax Compliance to Your Sellit Store#
When running your store on Sellit.ge:
- You link your Georgian merchant bank account (TBC or Bank of Georgia).
- Customer payments flow directly into your designated bank account.
- Since Sellit charges 0% transaction commission, your bank statements align 1:1 with your gross retail turnover, making monthly declarations seamless.
Summary#
Operating an online retail business legally in Georgia is transparent and straightforward. The 1% small business regime allows entrepreneurs to focus on marketing and customer satisfaction while keeping compliance friction low.