Inventory
According to the order N996 of the Minister of Finance of Georgia on December 31, 2010, from the reporting period of 2023, it became mandatory for taxpayers to fill in the columns of the monthly profit tax declaration for the month of March, “Balance of goods and material values at the end of the year” and “Balance of fixed assets at the end of the year”. As a result, taxpayers will be restricted from filing income tax returns for the month of March without filling in the inventory balance columns.
Inventory involves the description of both the commodity material values and the main means. Inventory accounting, systematization and declaration in accordance with the law is still a challenge for a significant part of the companies in Georgia. The areas of wholesale and retail trade, production and construction are characterized by high risk.
In what cases is inventory required?
- When there is reasonable doubt that the actual balance of the inventory differs from the accounting records;
- When the business is interested in the actual amount of property;
- When buying and selling or renting property;
- To draw annual accounting balances;
- When changing the materially responsible person or manager;
- When the facts of malicious acts or vandalism are revealed;
- In case of liquidation or reorganization of the company;
- During revaluation of fixed assets;
Depending on the customer’s individual requirements, it is additionally possible to group the main means and supplies, to picture them, to assign barcodes and to provide the said information in the required format for the management.
Loialte’s inventory process is as follows:
- An inventory team is formed, consisting of Loialte representatives and the person materially responsible for the inventory (who in turn is a representative of the client company).
- Based on the results of primary documentation processing, a list of property/supplies is drawn up, in which the name, number and location of the inventory objects are determined.
- The actual number of identified property/inventories will be compared with the accounting data, and in the event of a deficit or excess, additional amounts to be charged will be determined by the Revenue Service.