Companies that want to sell tobacco in Georgia need to comply with the regulations for tobacco control and the special taxes imposed on these types of products. Tobacco consumption and imports have increased in Georgia in recent years. Cigarettes are the most widely purchased tobacco products in Georgia and many international brands sell their products in Georgia.
If you own a trading company or an import and export business in Georgia and you are interested in bringing cigarettes and other tobacco products into the country, our company formation agents in Georgia can help you comply with the legislative requirements.
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Requirements for tobacco imports
The taxation laws in Georgia set a special tax rate for tobacco imports. Excise duties are imposed in the country for a series of goods, such as tobacco, alcoholic beverages or petrol and diesel fuel. The import tax rate for tobacco and tobacco substitute products is 12%.
The sale of tobacco products in Georgia is prohibited to individuals under 18 years of age and in certain spaces like childcare and educational institutions, medical, schooling or cultural institutions, in retail stores where children’s toys are sold, by using vending machines or without proper packaging.
Tobacco products sold in Georgia include those destined for smoking or chewing, including cigarettes, cigars and cigarillos, piped tobacco or rolled tobacco as well as tobacco for chewing.
Tobacco control in Georgia
The following legislative documents are relevant for tobacco control in Georgia: the Law on Tobacco Control in Georgia, the Law on Food and Tobacco, the Law on Trade of Tobacco Products. According to law, tobacco products should be properly packaged, designed and labelled to include approved medical warnings.
The Georgian government has approved three types of main medical warnings, nine additional medical warnings and the letter and font size as well as the images that can be applied for these medical warnings. Tobacco producers and importers in Georgia should evenly distribute the medical warnings on the packages that are for sale. The warnings must be in the Georgian.
If you would like to know more about investments in Georgia and other business opportunities, like tourism or the pharmaceutical field, you can contact our company formation agents in Georgia.
Foreign investors who want to operate on the tobacco market and who will set up a company in Georgia have to be aware that the rules of the Tax Code of Georgia (Article 188) will apply to all types of tobacco products.
All tobacco products are charged with the VAT (charged at a rate of 18%), as well as with the import tax and the excise tax. The taxes on tobacco products have been constantly increased in the last years.
This is due to the fact that Georgia wants to reach the European Union’s (EU) tax level and policies on selling tobacco and tobacco products.
Thus, if you want to set up a business in Georgia in this field, please mind that since January 2019, an excise tax of GEL 1.70 is charged for each package. For pipe tobacco, the excise tax per package is of GEL 60 while for vaping products, it is charged a GEL 0.2 tax.
We invite you to contact our accountants in Georgia if you want to know more about the tax laws applicable to this industry, as well as on the documents you must maintain and submit on a regular basis with the Georgian institutions.
Our accountants can present the import procedures and documents you must maintain if you will import tobacco and tobacco products in this country.