In Georgia, the exchange of fiat money cryptocurrency is exempt from VAT

Georgian Finance Minister Nodar Khaduri (Nodar Khaduri) has signed a bill on the taxation of traders and crypto-currency miners. The document entered into force on June 28.

“Cryptocurrencies are digital assets that are exchanged electronically and based on a decentralized network. Their exchange does not require a reliable intermediary, but they are managed using distributed registry technology, ”the document says.

Traders – both individuals and companies – no longer have to pay VAT when exchanging cryptoactive assets for national or foreign currency. At the same time, only individuals are exempted from income tax for such operations.

It is now more profitable for mining companies to go offshore – only firms registered outside the country will be exempted from VAT. In addition, Khaduri stressed that the only means of payment on the territory of Georgia will be GEL, and it is prohibited to pay for goods with cryptocurrency.

Earlier it was reported that Georgia plans to become one of the first countries in the region to introduce a blockchain in the field of education.