Cash transactions in Georgia: Rules for sole proprietors, LLCs, and individuals

As of August 2026.

In Georgia, cash is still widely used in stores, salons, small cafes, and for paying for repairs, rent, consultations, and private transactions.

As a result, entrepreneurs and expats regularly have questions such as:

• Can a sole proprietor accept cash payments?
• Does a small business with a 1 % tax rate need a cash register?
• Can payments be accepted in dollars or euros?
• How should an LLC account for funds contributed by a founder?
• What documents are required when purchasing goods from an individual?
• Is there a maximum amount for cash payments?
• Is a standard invoice considered proof of payment?

Let’s break down the rules using clear examples.

Key points in one minute

Cash payments are permitted in Georgia. The mere fact of paying in cash is not a violation and does not trigger a separate tax.

However, there are four main rules for businesses:

1. Cash revenue must be recorded.
2. A cash register is typically required when accepting cash from a customer.
3. Business owners must list and advertise prices in lari.
4. Receipt and expenditure of cash must be documented.

The form of payment does not change the tax treatment of income. If a payment constitutes business revenue, it remains revenue regardless of whether it was received via bank transfer or in cash.

Situation	What is usually required
A sole proprietor accepts cash from a customer	Process the payment through a cash register and issue a receipt
A sole proprietor with small business status accepts cash	As a general rule, a cash register is also required
An LLC receives cash for goods or services	A cash register receipt, recording of the funds in the company’s books, a contract, or other transaction document
A microbusiness accepts cash	Exemptions often apply, but it is necessary to check the type of activity and any exceptions
A business purchases goods from another entrepreneur	A contract, delivery note, or receipt, a payment document, and, if necessary, a tax invoice
An LLC purchases property from an ordinary individual	Contract or purchase order, seller’s information, receipt, or other document confirming the transfer of funds
An individual makes a one‐time sale of a personal item	A cash register is usually not required, but for large amounts, it is advisable to draw up a contract and a receipt
A founder transfers cash to their company	The legal basis must be specified: loan, contribution, reimbursement of expenses, return of accountable funds, etc.
A company issues cash to a director or employee	There must be a basis for the disbursement and documentation of subsequent expenditure
The parties settle accounts for a large transaction	It is safer to use a bank transfer; if paying in cash, a contract and a receipt are required

1. Can a sole proprietor or LLC accept cash?

Yes. Georgian law does not require that all business transactions be conducted exclusively through a bank account.

A sole proprietor, company, store, café, craftsman, consultant, or construction crew may accept cash payments. The main issue is not whether you can receive cash, but how to properly record and report it in your accounting.

The Tax Code establishes a general rule: a person engaged in economic activity who accepts cash payments from a customer for goods or services must record the transaction using a cash register. This rule also applies to advance payments for goods or services to be provided at a later date.

Example

A sole proprietor provides consulting services for 300 lari.

The client may:

• transfer 300 lari to a bank account;
• pay 300 lari in cash.

In both cases, the entrepreneur has received income in the amount of 300 lari. However, with a cash payment, the additional issue of using a cash register and issuing a receipt arises.

2. Is there a limit on cash transactions?

For ordinary business or private transactions in Georgia, the primary regulatory mechanism is not based on a single, universal limit beyond which cash is completely prohibited, but rather on proper recording of payments, the use of a cash register, and the availability of supporting documents.

In other words, a payment of 20,000 or 50,000 lari does not become illegal simply because it is made in cash.

However, the larger the amount, the higher the practical risks:

• the tax authority may request contracts and documents;
• the bank may require an explanation of the money’s origin when it is subsequently deposited into an account;
• it will be more difficult for one of the parties to prove that payment was made;
• questions may arise regarding the origin of the funds;
• an error in cash register or accounting records becomes more significant.

For large transactions, a bank transfer is almost always safer than handing over cash in person.

3. When a cash register is required

As a general rule, a cash register is required when both of the following conditions are met:

1. the individual is engaged in economic activity;
2. the customer pays for goods or services in cash.

This applies not only to stores and restaurants, but also to many types of services:

• consulting;
• repairs;
• beauty services;
• equipment rentals;
• training;
• travel services;
• construction;
• delivery;
• sales via social media;
• sales through a small office or showroom.

Does a sole proprietor subject to the 1 % tax rate need a cash register?

Yes, small business status alone does not exempt a sole proprietor from using a cash register.

A common misconception among expats is: “I pay 1 % of my revenue, so I don’t need a cash register.”

The tax rate and the obligation to record cash transactions are separate issues. The Revenue Service specifically states that individuals with small business status must record cash transactions using a cash register.

What about microbusinesses?

For individuals with microbusiness status, the Tax Code provides an exemption from the general requirement to use a cash register. However, exceptions may apply for certain types of activities and special situations.

Therefore, you cannot automatically assume that “I have a microbusiness — I’ll never need a cash register.”

First, you must verify:

• whether your microbusiness status is currently active;
• whether your actual activities align with that status;
• whether there are any special requirements for a specific type of trade or service;
• whether you employ any hired labor;
• whether the scale of your operations has changed.

Work performed at the customer’s premises

The Tax Code provides a separate exception for certain cases where goods or services are provided directly at the customer’s premises, and instead of a standard sales receipt, a prescribed document equivalent to a receipt is issued.

This may apply to repairs, installation work, delivery, and on‐site services. However, a standard receipt written in free form is not always automatically considered such a document.

4. Can a cash register receipt be replaced with a regular invoice?

Not always.

The word “invoice” often causes confusion, especially among foreigners. It can refer to a variety of completely different documents:

• a commercial invoice for payment;
• a service statement or bill;
• a tax invoice;
• a strictly accountable document;
• a standard PDF containing the seller’s details.

The Tax Code does indeed provide for situations where a special strictly accountable document or a tax invoice is used instead of a cash register. However, a standard commercial invoice created in Word, Excel, or accounting software does not automatically become a tax invoice and does not necessarily replace a cash register receipt.

Rule of thumb

If a customer pays a business owner in cash, you shouldn’t assume the matter is settled just because an invoice was sent to them.

You must determine separately:

• whether a cash register receipt is required;
• which document confirms the provision of services or the transfer of goods;
• which document confirms payment;
• whether a tax invoice is required;
• how the transaction will be recorded in the books.

5. What happens if you don’t use a cash register

The Tax Service has the right to conduct test purchases — including by posing as a regular customer—and verify whether the payment was recorded.

For failing to have a cash register, failing to use it, or indicating an understated amount on a receipt, the Tax Code provides for a fine of 200 lari for the corresponding violation. More significant penalties apply for the loss of certain types of cash registers.

It is important to note that the issue is not always limited to a single fine. Repeated cash register violations can affect an entrepreneur’s tax status and serve as grounds for a more thorough audit of their revenue.

A typical scenario

A customer paid for a service in cash — 500 lari.

The business owner:

• issued a handwritten receipt to the customer;
• did not print a cash register receipt;
• did not include the payment in the daily revenue.

A handwritten receipt can help confirm the transaction between the parties, but by itself does not resolve the cash register and tax violations.

6. In what currency must businesses list prices?

The lari is the sole legal tender in Georgia, except for specific exceptions—such as free industrial zones, duty‐free shops, and other cases provided for by law or by regulations of the National Bank.

Businesses are required to list and advertise prices for goods, services, and property for sale in lari.

This rule applies to:

• price tags in stores;
• menus;
• company websites;
• advertisements;
• commercial offers to consumers;
• social media posts;
• offers from sole proprietors;
• advertisements by developers and agencies;
• payment pages.

Incorrect

Consultation — 200 USD.

Safer

Consultation — 540 GEL.

If necessary, a reference equivalent in dollars may be included nearby, but the main price must be clearly stated in lari.

The final cost, including applicable taxes and mandatory additional charges, must be clear to the consumer. Before the transaction is concluded, the seller must also disclose the terms and methods of payment.

7. Can a contract be concluded in dollars or euros?

The Civil Code of Georgia permits monetary obligations to be denominated in foreign currency, provided this is not prohibited by law.

Therefore, the parties may peg the contract price to the U.S. dollar or the euro. However, the document must clearly distinguish between:

• the price currency — the currency in which the value is expressed;
• the payment currency — the currency in which payment is actually made;
• the exchange rate;
• the date on which the exchange rate is determined;
• the rounding rules.

Good wording

The cost of services is the equivalent of 5,000 U.S. dollars in Georgian lari. Payment is made in lari at the official exchange rate of the National Bank of Georgia as of the payment date.

Poor wording

The cost of services is 5,000 dollars.

The second wording does not make it clear:

• whether payment must be made specifically in cash U.S. dollars;
• whether payment can be made in lari;
• which exchange rate applies;
• on what date the exchange rate is determined;
• who bears the loss in the event of an exchange rate change.

For regular business with clients within Georgia, it is simpler to set prices and accept payment in lari.

8. Rounding of cash payments

In Georgia, when paying in cash, the total purchase amount is rounded to the nearest five tetri.

In this case:

• the prices of individual items remain unchanged;
• only the total amount on the receipt is rounded;
• when paying by card, the amount may be calculated to the nearest tetri.

Total amount, GEL	Cash payment, GEL
10,01 or 10,02	10,00
10,03 or 10,04	10,05
10,06 or 10,07	10,05
10,08 or 10,09	10,10

This is a minor but typical rule in Georgia that should be taken into account when configuring a point‐of‐sale and accounting system.

9. What documents are required when receiving cash

A cash register receipt records the payment but does not always describe the entire transaction.

Depending on the situation, a business may need:

• a contract;
• an order or request;
• a service completion report;
• a delivery note;
• a cash register receipt;
• a tax invoice;
• a return document;
• a receipt;
• a purchase order;
• a document confirming the withdrawal or deposit of funds into the company’s cash register.

For a simple retail sale

Typically, the main document for the buyer will be a cash register receipt.

For a service or long‐term project

It is best to have:

• a contract or agreed‐upon proposal;
• a certificate of completion;
• a cash register receipt or other appropriate payment document.

For large amounts

In addition to the cash register receipt, it is advisable to draw up a separate document specifying the following:

• the parties;
• the basis for the payment;
• the amount in numerals and words;
• the currency;
• the date and place of transfer;
• the contract number;
• whether the payment is full or partial;
• the remaining balance;
• the recipient’s signature.

The Civil Code grants the payer the right to request a document confirming receipt of payment. This document must specify the nature and amount of the obligation, the payer, and the time and place of payment. If the recipient refuses to issue such a document, the payer has the right, in cases provided for by law, to refuse to transfer the money.

10. How to record business cash expenses

A cash payment to a supplier does not mean that the expense will automatically be recognized based solely on the director’s word or an entry in a spreadsheet.

To record the expense, you must confirm two things:

1. What exactly the business purchased.
2. That the business actually made the payment.

The following documents are typically used:

• a contract;
• an invoice;
• a delivery note;
• a delivery and acceptance certificate;
• a supplier’s cash register receipt;
• a strictly accountable document;
• a tax invoice — when applicable;
• a receipt from an individual;
• purchase order;
• documents regarding the shipment of goods;
• internal document regarding the disbursement of funds to an employee.

The following are not sufficient on their own:

• photos of the goods;
• messages on WhatsApp or Telegram;
• a money transfer to the director without a report;
• a standard invoice without proof of payment;
• a note stating “purchased for the company”;
• a bank withdrawal of cash from an LLC’s account.

An ATM withdrawal only confirms that money was withdrawn from the account. It does not prove what the money was subsequently spent on.

It is especially important to keep documentation for goods and inventory. For inventory items identified during an audit for which there are no proper source documents, the Tax Code provides for a fine calculated based on their market value.

11. Cash transactions for sole proprietors

For sole proprietors, business funds and personal funds are not legally separated as strictly as they are for LLCs. However, this does not mean that the entrepreneur is exempt from keeping records.

A sole proprietor must be able to explain:

• from whom the money was received;
• whether the payment relates to business activities;
• whether it is included in revenue;
• whether a cash register receipt was issued;
• what the expense was for;
• whether supporting documents are available.

Common mistakes made by sole proprietors

1. Accepting cash and recording only bank deposits. The Revenue Service can cross‐check a business owner’s activities, number of customers, purchases, advertising, and actual cash receipts.
2. Failing to record advance payments. If a client has paid cash in advance for a future service, such a payment cannot simply be held “until the work is completed” without proper documentation.
3. Assuming that the 1 % tax applies only to money in a bank account. The tax regime is determined by income from business activities, not by the method of receiving payment.
4. Using personal transfers as a substitute for cash accounting. Transferring funds to a personal card, depositing cash via an ATM, or receiving money through a relative does not change the economic nature of the payment.
5. Do not conflate personal sales with business activities. A one‐time sale of your own phone and regular phone sales are fundamentally different transactions, even if in both cases the seller is formally an individual.

12. Cash transactions of an LLC

The LLC’s funds belong to the company, not to the founder, director, or ultimate beneficiary.

Therefore, the director should not treat the company’s cash as his or her personal wallet.

Every cash inflow must have a valid basis:

• revenue;
• advance from a customer;
• loan from a founder;
• contribution;
• repayment of previously disbursed funds;
• reimbursement;
• other documented inflow.

Every cash disbursement must also be justified:

• payment to a supplier;
• disbursement against a travel allowance;
• loan repayment;
• salaries;
• reimbursement of expenses;
• dividends;
• operating expenses;
• refund to a client.

You cannot simply withdraw 10,000 lari from the LLC’s account and assume that the money has subsequently become the director’s personal funds.

The tax consequences depend on what actually happened. The same disbursement of funds may be classified as:

• a company expense;
• a loan;
• a payment to an employee;
• a dividend;
• remuneration;
• an unjustified withdrawal of funds.

This is precisely why the basis for the transaction must be determined before the funds are disbursed, rather than retroactively following a request from an accountant or the tax authority.

13. A founder contributes cash to an LLC

The mere fact that money was transferred to the company does not explain why it was received.

The basis for the contribution must be determined before the funds are contributed.

Option 1. A Loan to the company

The founder provides the LLC with money on the condition that it will be repaid later.

Required:

• a loan agreement;
• a document confirming the transfer of funds;
• recording of the debt in the accounting records.

Option 2. Founder’s contribution

Depending on the structure of the transaction, this may require a corporate resolution and proper accounting documentation.

Option 3. Return of funds under the director’s control

For example, the director previously received funds for business expenses and is returning the unused balance.

Option 4. Payment of a debt owed to the company

It must be clear on what basis the debt originally arose.

Incorrect Approach

The founder brought in 20,000 lari; the accountant will sort it out later.

The larger the amount, the more important it is to prepare the documents in advance and retain proof of its origin.

14. An LLC or Sole Proprietor Purchases Property from an Individual

A business may purchase the following from an individual:

• a car;
• a computer;
• furniture;
• equipment;
• tools;
• a domain name;
• personal property;
• other assets.

An individual may not have a cash register or a commercial invoice. Therefore, the transaction must be documented using other documents.

Recommended set of documents:

• a purchase and sale agreement or a purchase order;
• the seller’s passport information or personal identification number;
• a detailed description of the property;
• the price;
• the date of transfer;
• receipt for payment;
• transfer and acceptance certificate;
• if necessary — documents confirming the registration or origin of the property.

Before concluding the transaction, you must also verify the tax status of the payment. Depending on the subject of the transaction, the seller’s status, and the nature of the buyer’s income, additional obligations may arise.

15. Private transactions between individuals

When an individual makes a one‐time sale of personal property and is not acting as a business owner, the rules regarding cash registers generally do not apply.

For example:

• an expat sells their car;
• an owner sells a used laptop;
• a relative repays a loan;
• a buyer pays a deposit for an apartment;
• two people settle the payment for the sale of furniture.

However, the absence of a cash register does not mean that the transaction does not need to be documented.

For significant amounts, it is advisable to draw up:

• a written contract;
• a transfer and acceptance certificate;
• a receipt for the money received;
• information about the currency and exchange rate;
• proof of the funds’ origin.

The following wording is particularly risky: “The money was transferred prior to signing the contract; the parties have no claims.”

While this may serve as evidence, a separate receipt signed at the exact moment of payment is significantly more reliable.

16. Cash and taxes

Taxes depend not on the form of payment (whether cash or not), but on the economic substance of the transaction.

Revenue does not cease to be revenue simply because the money:

• was handed over in cash;
• was not deposited in a bank;
• was received in foreign currency;
• was transferred through an employee;
• was split into several payments;
• was deposited into an account at a later date;
• was not accompanied by a contract.

Cash revenue is taken into account when calculating a business owner’s turnover and determining tax liabilities.

This also applies to the threshold for mandatory registration as a VAT payer. As a general rule, the obligation arises when the total amount of VAT‐subject transactions for any consecutive 12 calendar months exceeds 100,000 lari. The method of payment — cash or non‐cash — does not affect the calculation of this threshold.

Example

Over the past 12 months, the sole proprietor received:

• 65,000 lari via bank transfers;
• 25,000 lari through payment services;
• 20,000 lari in cash.

When analyzing the threshold, all transactions are taken into account collectively, not just the funds visible on the bank statement.

17. Depositing cash into a bank account

You can deposit cash into the account of a sole proprietorship or LLC. However, a bank receipt only confirms that the money was deposited with the bank.

It does not replace:

• cash register receipts that should have been issued to customers;
• contracts;
• documents regarding the source of the funds;
• tax records of revenue;
• documents regarding a loan from the founder.

For large deposits, the bank may request:

• the source of the funds;
• contracts;
• tax returns;
• cash register documents;
• documents regarding the sale of property;
• proof of a withdrawal from another bank;
• a customs declaration, if the cash was imported from abroad;
• an explanation of the economic purpose of the transaction.

Therefore, you should not accumulate cash revenue for several months and then deposit it into an account in a single lump sum without a clear paper trail.

18. Seven practical scenarios

Scenario 1. A sole proprietor consultant received 500 lari in cash

The payment must be recorded through a cash register, unless a specific exemption applies, and the 500 lari must be included in revenue.

Scenario 2. A sole proprietor with small business status received a cash advance

The advance must also be properly recorded. Cash register accounting cannot be deferred until the service is completed.

Situation 3. An LLC received cash from a client

The company records the cash transaction, reflects the funds in its accounting records, and retains the transaction documents. The money becomes the property of the LLC, not the director.

Situation 4. A founder brought money to pay the LLC’s rent

This must be recorded in advance as a loan, contribution, or other permissible receipt. The company then pays the rent.

Situation 5. An LLC purchased a laptop from an individual

A contract or purchase order must be drawn up, along with a description of the laptop, the seller’s details, a transfer certificate, and a receipt for the payment.

Situation 6. An individual sold their personal car once

A cash register is usually not required if this is not a business activity. However, a contract and proof of payment are necessary.

Situation 7. A company received payment in dollars

It is necessary to verify how the price was specified in the offer and contract, what currency was agreed upon for payment, and how the amount is recorded in lari for accounting purposes. For regular transactions with customers, it is safer to accept payment in lari.

19. Common mistakes made by expats

“Cash isn’t visible to the tax authorities”

A tax audit isn’t limited to analyzing bank statements.

“I issued an invoice — so I don’t need a receipt”

A standard commercial invoice does not always replace a cash register receipt.

“I have a small business with a 1 % tax rate, so I don’t need a cash register”

Small business status alone does not grant such an exemption.

“The company belongs to me, so I can take money from the cash register”

The LLC’s funds belong to the legal entity. Any withdrawal must be justified.

“I paid in cash, so a receipt is enough.”

A receipt confirms the transfer of money but does not always replace a contract, statement, delivery note, or cash register receipt.

“If the money hasn’t been deposited into the bank, it isn’t included in revenue.”

Cash receipts are also part of the business’s revenue.

“It’s okay to list prices only in dollars — that’s what everyone does.”

For entrepreneurs, the basic rule requires that prices be listed and advertised in lari.

“A large amount can be split into smaller payments.”

Splitting a single payment into several parts does not change the economic substance of the transaction.

20. Checklist for sole proprietors

Before you start accepting cash, check the following:

• whether your tax status is active;
• whether you need a cash register for your business;
• whether the cash register is registered to the correct taxpayer and address;
• whether prices are correctly listed in lari;
• whether advance payments are being recorded;
• whether cash revenue is recorded in your books;
• whether expense documents are retained;
• whether the cash register data matches the actual cash on hand;
• whether sales of personal property are kept separate from business transactions;
• whether cash income is taken into account when calculating tax thresholds.

21. Checklist for LLCs

The company must monitor:

• the documentation of each cash receipt;
• the issuance of cash register receipts to customers;
• the existence of contracts and agreements;
• the basis for capital contributions by the founder;
• the basis for disbursements to the director or employees;
• documents related to accountable expenses;
• documents for purchases from individuals;
• recording of cash receipts;
• consistency between the actual balance and accounting records;
• storage of source documents;
• currency of prices and payments;
• tax implications of payments.

22. Frequently asked questions

Can a sole proprietor accept cash?

Yes. However, cash payments must be recorded, and in certain cases, processed through a cash register.

Does a sole proprietor with small business status need a cash register?

As a general rule, yes. The 1 % rate does not exempt you from cash register compliance.

Can you accept cash in U.S. dollars?

In contracts, obligations may be tied to a foreign currency, but entrepreneurs’ prices must be stated in lari. For ongoing business with clients, it is safer to accept payment in lari and to describe the contract’s currency terms in detail.

Is there a maximum amount for cash payments?

For routine transactions, the main focus is not on a single universal limit, but on record‐keeping, documentation, and the source of the funds. For large amounts, a bank transfer is significantly safer.

Is there a separate tax on cash?

No. However, cash income is taxed under the same rules as non‐cash income.

Does a cash register receipt serve as a contract?

Not always. A receipt confirms payment but may not include all the terms of the transaction.

Does a contract serve as a cash register receipt?

No. The existence of a contract does not, in and of itself, eliminate the obligation to record a cash payment.

Can an LLC’s expenses be paid in cash?

Yes, but the company must document the basis, subject, and fact of the payment.

Can a director withdraw money from the LLC’s account?

Technically, it is possible to withdraw money, but its subsequent use must have a lawful and documented basis.

What should you do if the seller is an individual?

Draw up a contract or a purchase order, a transfer certificate, and a receipt. You should also check for any potential tax obligations.

Conclusion

Cash transactions are permitted in Georgia for both individuals and businesses.

The main mistake is to treat cash as money that can be left out of the books.

For sole proprietors and LLCs, a safe procedure looks like this:

• The price is correctly stated in lari.
• The transaction is confirmed by a contract, order, certificate, or invoice.
• Cash payments are recorded through a cash register when required.
• The customer receives a receipt or other appropriate document.
• Revenue is included in turnover.
• Expenses are supported by source documents.
• Company funds are not commingled with the personal funds of the founder or director.
• For large transactions, a bank transfer is used or a detailed receipt is issued.

Espero helps foreign entrepreneurs register a sole proprietorship or LLC in Georgia, choose a tax status, set up accounting, and properly handle cash transactions.

This material is for informational purposes only. Requirements may vary depending on tax status, type of activity, payment method, and the parties involved in the transaction.