According to a recent publication by Bitcoin.com, the Republic of Georgia has exempted crypto-related companies from paying value added tax (VAT).
The Minister of Finance of Georgia, Nodar Khaduri, has signed a bill aimed at regulating the taxes of companies that sell or mine cryptocurrencies. The bill includes the following definition of cryptocurrency:
"Cryptocurrencies are digital assets that are exchanged electronically and based on a decentralized network. Their exchange does not require a reliable intermediary and they are managed using distributed ledger technology."
From now on, Georgia residents will be able to exchange cryptocurrencies for fiat money without having to pay the corresponding VAT. However, Khaduri has highlighted that the Georgian Lari will remain the main legal tender in the country:
"The Georgian Lari will remain the main legal tender in Georgia and, just like foreign currencies, our country will not allow the use of cryptocurrencies to make payments."
Mining companies still will have to pay VAT if they are not registered abroad.
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