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.
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