Importation allows the introduction of foreign goods into the country for subsequent resale. 


Initial recognition of the import

Each transaction in the framework of foreign economic activity provides for accounting for:

  • the cost of imported goods;
  • actual taxation.

According to the tax code requirements, importation is put into receipt at historical cost. It includes the cost, import duties, and customs duties.

The specific process of import recognition is made by expressing the value in foreign currency. It is important to correctly translate the actual amount into the national currency. According to the rules of Georgian accounting, the value of imports in the accounting bases and reporting documents should be shown in GEL. To avoid errors, it is necessary to use the official exchange rate of the Central Bank on the date of arrival. Another specific accounting nuance is related to exchange rate differences. The importer is insured neither from positive nor from negative rate difference. 

The date of arrival of imported goods is determined as the date of transfer of ownership, taking into account the terms of delivery, reflected in Incoterms.

Import prime cost formation

Under the law in force, the importer enters the imported goods into the books at the actual cost. Its correct definition is reliable insurance against calculation errors and tax problems.

The purpose of determining the prime cost of imported products is conditional upon the presence of various payments expressed in foreign currency, split payment to the supplier. 

For example, in determining the value of prepaid goods there will be used the exchange rate at the date of prepayment. 

When it comes to the part not prepaid the exchange rate as of the date of goods recording will be used in calculating the value.

Debt to the supplier for goods taken into account is subject to revaluation. The latter is carried out monthly and on the date of its repayment. In both situations, there are exchange rate differences. They should be accounted for as extraordinary expenses or income.


 Accounting for imports is performed according to a universal scheme.

The accounting reflects:

  • settlements with a supplier (the fact of payment for products to a foreign company);
  • payment of customs duty;
  • payment of import VAT;
  • import entry;
  • entry of goods in the books;
  • inclusion of customs duties and fees in the value of import;
  • shipping costs, customs clearance;
  • exchange rate difference.

Typical mistakes in the FEA reflection 

Most often, specialists make them at the stage:

  • Determination of GEL equivalent of the value of imported products expressed in foreign currency.
  • Combination of operations when making entries. Each of them should be reflected by a separate entry. It is recommended to pay special attention to the reflection of exchange rate differences. Negative and positive differences shall be recorded by separate entries.
  • Documentation of operations, if there are certain questions about the supporting documents. The quality of accounting primary documentation for foreign economic activity and internal operations must comply with current legislation. Otherwise, there is no way to avoid problems during a tax inspection.

Customs payments and taxation of imports

An accountant has to calculate several types of payments and transfer them to the budget. Excises, VAT, customs duties, and customs fees for clearance, storage, and escorting of products are obligatory when importing. 

According to the Tax Code, the taxable base for VAT is determined based on the customs value of the imported goods, customs duty, and excise duties.

Importers applying the general taxation system and not enjoying the VAT exemption may deduct the paid sums. 

The application of special regimes of taxation does not relieve importers of the obligation to transfer import VAT to the budget. These taxpayers cannot claim a deduction for this tax. They account for VAT as an expense.

Accounting for imports has many other peculiarities. To take them all into account, the accountant must have the appropriate competence, regularly improve their qualifications, and follow the changes in currency and tax legislation.

It is not necessary to put a specialist on the payroll. It is rational to outsource foreign economic activity accounting. This makes it possible not only to implement the function effectively but also to obtain guarantees of the quality of accounting, the correctness of calculations, and the accuracy of declarations.