Georgian? company will never pay VAT for marketing services made abroad via Google system.
Namely, the issue is of Alter Way company, which has put on to? due instances for exemption from VAT payment.
A an important part of websites put together by alternatives designated after only foreign consumers, where Google AD method is applied that provides a certain mediator relating to the AD customer and the company.
“We had considerations that services were performed abroad and then we were to pay only profits tax, not VAT tax.
Today many physical our body is engaged in this business. The subject was very complicated but it took much time to solve it”, Giorgi Romanadze, business development director of your company told the corporation Contract.
“The case with these company has proved that revenues from Yahoo is exempted from VAT if there’s foreign traffic”, the corporation representatives noted.
Google have not introduced unique advertising service in Georgia, however, that is a widespread method abroad, because for customers the firm generates interesting advertisement schemes and that is more cost-effective as compared with traditional advertisement.
“Georgia has much prospect of developing social advertisement. Customers know that real results are caused by digital marketing too and this is far cheaper compared to television. When we finally undertook e-commerce, companies were petrified of putting money. Currently the situation has changed. Digital marketing enables to waste funds on folks that create certain segments”, Giorgi Romanadze said.
“We use Google system for promotion. It was disputable whether our service was a marketing service, because, generally, advertising services performed abroad are exempted from VAT. It absolutely was confirmed that we provide advertising activities and we’re don’t pay VAT”, the company representatives said.
Meanwhile, the corporation will end up the next partner of Google in Georgia inside a month.