Georgia: Self-constructed buildings for business purposes are subject to VAT under certain conditions

VAT liability arises if the building is produced by the taxable person, used in economic activity, and VAT deduction is not allowed for VAT-exempt operations.

Share
October 21, 2025

The Ministry of Finance in late July 2025 issued a public ruling clarifying that self-constructed buildings for business purposes are subject to value added tax (VAT) if certain conditions are met.

VAT liability arises if the building is produced by the taxable person, used in economic activity, and VAT deduction is not allowed for VAT-exempt operations.

Only construction costs are included in the VAT base, excluding land value.


For more information, contact a KPMG tax professional in Georgia:

Mikheil Khvedelidze | mkhvedelidze@kpmg.com

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline