THE TAX SYSTEM OF GEORGIA IN PANDEXIT PERIOD

During the covid pandemic, a number of entrepreneurs have shown unscrupulous attitudes towards the automatic refund of VAT. New regulations and norms have been implemented so as to control unlawful or illegal refund of paid taxes from budget. The buyer of the goods is entitled to deduct the value added tax paid only in that case if he instead of the supplier, will pay the VAT amount to the budget. The relation between entrepreneurial entities and the state has significantly improved. The main focus was not on finding fault and appropriate sanctioning but also to inform taxpayers about their possible mistakes. In order to perfect this idea, special rules have developed, which means informing taxpayers at an early stage about specific violations and warning them. A loyal approach was formed regarding the inaccuracies allowed by the taxpayers in the declarations, there was introduced audit program of declaration which allowed tax payers to verify their data. In 2021, 15 969 declarations were examined, and the amount adjusted by the taxpayers amounted to 67 170 364 GEL. An entirely new ,,hypothetical taxation” mechanism has been developed, which aims to calculate and reflect the possible hypothetical amounts on the personal account of taxpayers. The regulation has had a positive effect on part of the budget as well as reduced the rate of non-submission of declarations by value-added taxpayers. A new debt management strategy has been developed for 2022, which aims at a loyal approach to the collection of tax debt from entrepreneurs, which involves a variety of preventive measures to reduce tax evasion, as well as improving the rate of debt repayment before the budget and reducing existing debts. The existing regulation is especially important for enterprises whose financial situation was unfavorable at the time of the pandexit. In conclusion, the article gives us very essential information about changes and enscouraging regulation of taxes. While all regulations, such as financial assistance or deferral of taxes are important in oder to support the financial crisis, this should not give the impression that all their losses will be compensate by the state budget. It is very difficult to make right decision in tax laws, firstly, it should not course the crisis of budget, secondly, it must be loyal towards taxpayers. I think that the implemented changes have a positive effect on entrepreneurial entities because most of them are liberal. To sum up all these, stricter tax policies at this stage will be ineffective, moreover, it will cause damage to business and as a result will have a negative impact on the economy.