What is the Expense Reimbursement policy in Georgia?



Modified on: Fri, 23 Jan, 2026 at 2:48 PM

This article outlines the rules for business expense reimbursement in Georgia, including mileage practices, documentation standards, tax treatment, and common reimbursable categories.


1. Mileage Reimbursement 

Georgia does not have a government‑mandated mileage reimbursement rate.


Company‑Defined Mileage Rates

Employers may set any reasonable per‑kilometre rate in their internal policy.

Typical market practice:

  • USD 0.20 – 0.30 per km, depending on:
    • Vehicle type
    • Fuel costs
    • Business travel patterns

Mileage Reimbursement Requirements

  • Must be linked to genuine business travel
  • Should be supported by a mileage log recording:
    • Date
    • Route
    • Purpose
    • Distance travelled

Parking and tolls are reimbursed separately. 


2. Parking, Tolls, and Road Costs

These are reimbursable when incurred for business reasons.

Documentation

  • Receipts required whenever available
  • If no receipt is issued (e.g., unmanned parking lots or electronic toll systems):
    • Bank card payment proof, or
    • Internal declaration (if allowed by employer policy)

Traffic fines or penalties are not reimbursable.


3. General Business Travel Requirements

Georgia imposes no legal caps on:

  • Travel days
  • Hotel rates
  • Daily reimbursement amounts
  • Mileage totals

Employers must:

  • Set their own internal travel budget rules
  • Ensure all travel is business‑related, reasonable, and necessary


4. Transportation Expense Rules

There are no government restrictions on allowable transportation types.

Reimbursable modes include:

  • Air travel
  • Train or rail
  • Long‑distance bus
  • Taxi
  • Ride‑hailing services (Bolt, Yandex, Uber)
  • Rental cars

Documentation

Receipts should be provided whenever possible.
Ride‑hailing apps generally issue digital receipts or screenshots, which are acceptable.

Rental cars require:

  • Rental agreement
  • Invoice
  • Fuel receipts (if employee pays directly)


5. Documentation Requirements for Non‑Taxable Reimbursement

To treat reimbursements as business-related and non‑taxable, Georgia generally requires a valid receipt or invoice showing:

  • Supplier name
  • Supplier Tax ID (if applicable)
  • Date
  • Amount paid
  • Description of goods or services

For small vendors (kiosks, small cafés, taxis, roadside purchases), handwritten receipts or simplified documents are acceptable.

Reimbursements without documentation may be:

  • Denied
  • Treated as taxable employee income


6. Tax-Free Reimbursable Expenses 

The following are typically non‑taxable if reasonable, business-related, and properly documented:

  • Airfare, train, bus, taxi, ride‑hailing
  • Accommodation
  • Meals during business travel
  • Fuel (when fuel reimbursement policy applies)
  • Parking and tolls
  • Office supplies and consumables
  • Work-related equipment (small tools, peripherals)
  • Communication expenses:
    • SIM cards
    • Mobile data
    • Internet used for work
  • Client entertainment (with receipts and business justification)


7. Per Diem Allowances

Georgia does not set mandatory per diem rates for private‑sector employees.


Typical Company Per Diem Rates

  • GEL 30–50 per day for domestic travel
  • USD 50–80 per day for international travel


Tax Treatment

Per diems are generally non‑taxable when:

  1. The employee is traveling for business, and
  2. The travel occurs outside the normal work location


8. Entertainment, Gifts, and Team Events

Client Entertainment

  • Tax-free if:
    • Business-related
    • Reasonable
    • Supported by receipts and clear purpose


9. Non-Reimbursable or Taxable Personal Benefits

Typically taxable unless mandatory for work:

  • Gym memberships
  • Yoga, fitness, swimming
  • Therapy or wellness programs
  • Personal medical expenses (unless required by job duties)

Non-business expenses are treated as fringe benefits and subject to tax.


10. VAT Rules 

  • VAT applies to vendor invoices (standard rate 18%)
  • VAT applies to the original supplier, not to reimbursement itself

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