on Strict Accounting Forms

LAW OF GEORGIA

ON STRICT ACCOUNTING FORMS

Chapter I - General Provisions

Article 1 - Purpose of the Law

1. This Law determines the legal basis for the development, production and use of strict accounting forms in Georgia.

2. This Law aims to determine the types of strict accounting forms (letterheads, tickets or other documents) and to establish a state-controlled order for their development, production, storage and use.

Article 2 - Definition of terms used in the Law

The terms used in this Law shall have the following meanings:

a) strict accounting form - a letterhead, a ticket or a document of specific content, shape and size, which is used for recording payments, accounting, and legal or other facts related to activities in various fields (delivery of goods, performance of work, provision of services and other) and which is developed by one or several legal entities on a sectoral basis and introduced in compliance with the requirements of this Law;

b) legal entity - a natural or a legal person, a government institution, an agency or a legal entity under public law;

c) list of strict accounting forms - the list of strict accounting forms provided for in sub-paragraph (a) of this article, and approved by the Ministry of Finance of Georgia;

d) responsible person - a person entrusted with specific responsibility to ensure compliance with the requirements for strict accounting forms as established by legislation;

e) printing enterprise - an enterprise which produces, records, stores and sells strict accounting forms in accordance with the established procedure.

Article 3 - Categories of strict accounting forms

Strict accounting forms, based on the complexity of their protection, are divided into the following categories:

a) the first category - 'highly protected'. This category includes strict accounting forms with 7 or more defensive marks;

b) the second category - 'protected'. This category includes strict accounting forms with 4-6 defensive marks;

c) the third category - 'simple type'. This category includes strict accounting forms with not more than 3 defensive marks.

Article 4 - Registration of strict accounting forms

1. Legal entities shall have registered at a legal entity under public law under the Ministry of Finance of Georgia called the Service Agency of the Ministry of Finance of Georgia ('the Agency') sample forms (drafts) of state documents certifying education, agreed with the legal entity under public law called the National Centre for Education Quality Enhancement, and samples (drafts) of other strict accounting forms, agreed with the Ministry of Education and Science of Georgia, which were used or are to be used by these legal entities.

1¹. The Agency shall be authorised to receive, store and issue any document in electronic form.

1². Neutral travel documents provided for in the Law of Georgia on the Procedure for Registering Citizens of Georgia and Aliens Residing in Georgia and for Issuing Identity (Residence) Cards and Passports of a Citizen of Georgia shall be printed and completed in a non-Georgian language only, and the Agency shall perform their registration without requiring agreement with the Ministry of Education and Science of Georgia.

2. The list of and the procedure for the registration of strict accounting forms shall be approved by the Ministry of Finance of Georgia.

3. Strict accounting forms, which are of national importance and which cannot be produced in printing enterprises existing in Georgia, may be produced outside Georgia by a decision of a customer and in agreement with the Ministry of Finance of Georgia.

Law of Georgia No 1913 of 3 November 2009 - LHG I, No 35, 19.11.2009, Art. 233

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Law of Georgia No 3372 of 6 July 2010 - LGH I, No 40, 20.7.2010, Art. 250

Law of Georgia No 4992 of 1 July 2011 - website, 15.7.2011

Law of Georgia No 5515 of 20 December 2011 - website, 28.12.2011

Law of Georgia No 349 of 20 March 2013 - website, 28.3.2013

Law of Georgia No 647 of 21 April 2017 - website, 10.5.2017

Article 5 - Categories of printing enterprises

Based on the quality and level of their production processes, printing enterprises are divided into following categories:

a) the first category - such printing enterprises have the right to print strict accounting forms of all types;

b) the second category - such printing enterprises have the right to print strict accounting forms provided for in Article 3(b) and (c) of this Law;

c) the third category - such printing enterprises have the right to print strict accounting forms provided in Article 3(c) of this Law.

Article 6 - Requirements for printing enterprises

1. Strict accounting forms shall be produced by printing enterprises that comply with the requirements of this Law.

2. Printing enterprises shall comply with the following requirements:

a) have special printing equipment appropriate for production according to the categories referred to in Article 3 of this Law;

b) master special methods of production, including the printing of originals, samples, letterheads and printing forms, and the numbering and finishing thereof (special technologies, materials, equipment and methods of control shall ensure necessary protection from forgery and unauthorised copying);

c) have printing specialists;

d) ensure the safety of finished products by special technical and organisational means.

3. The area of a printing enterprise shall meet the security requirements of an enterprise, namely:

a) a cloakroom shall be located and arranged in such a way as to exclude the taking out of printed products from the enterprise without supervision;

b) the enterprise shall have an alternative source of energy - a power generator;

c) warehouse spaces for raw materials and finished products shall be separated from each other;

d) there shall be a customer service room.

4. The full cycle of works at a printing enterprise shall include:

a) a pre-printing process;

b) a printing process;

c) a post-printing operations area;

d) a quality control area.

5. The capacities of shops and areas shall comply with the requirements provided for in paragraph 2 of this article. The cycle of production of strict accounting forms, including numbering and finishing, shall be completed in a single enterprise.  Cooperation between the enterprises shall be prohibited.

5¹. The printing enterprise, which can affix 3 and/or more defensive marks to its production, needs to obtain permission to carry out activities related to state secrets.

6.  Samples of strict accounting forms shall be produced, and defensive marks against illegal tampering shall be stored, protected and destroyed in a printing enterprise in accordance with the procedure established by the legislation of Georgia.

Law of Georgia No 4523 of 8 April 2011 - website, 18.4.2011

Chapter II - Procedure for Producing and Storing Strict Accounting Forms

Article 7 - Organisation of the production of strict accounting forms

The production of strict accounting forms shall be organised by legal entities which:

a) in accordance with the legislation of Georgia, design a specific form with the indication of their quality standard or other parameters, and determine, within their competence, the number of strict accounting forms needed and have them copied through printing enterprises;

b) in accordance with law, control the use of strict accounting forms.

Article 8 - Use of strict accounting forms by legal entities

1. The procedure for the use and accounting of strict accounting forms shall be determined by this Law and based on the procedure established by the respective legal entity.

2. Legal entities shall have their strict accounting forms supplied independently.

3. Printing enterprises operating in Georgia shall produce strict accounting forms on the basis of orders from legal entities, except as provided for in Article 3(4) of this Law.

4. Strict accounting forms shall be issued only on the basis of a properly prepared power of attorney.

5. Strict accounting forms shall be kept by a responsible person, who shall be designated by the head of a legal entity. He/she shall create appropriate conditions to enable all employees who are responsible for the storage and issuance of strict accounting forms to perform respective operations with these forms.

6. Strict accounting forms shall be stored in a specially designated and duly protected place.

7. Legal entities shall ensure the safeguarding of repositories intended for the storage and issuance of strict accounting forms and other operations related thereto.

Article 9 - Placing and processing orders for the production of strict accounting forms

1. Legal entities shall, in compliance with the provisions of this Law, submit to printing enterprises the samples of strict accounting forms agreed with the Agency.

2. Orders for the production of strict accounting forms shall be subject to mandatory recording in the order book of a printing enterprise - 'Strict accounting forms', that shall be numbered, stitched and certified by a seal of the printing enterprise.

3. An order book shall contain the following details:

a) sequence number of order;

b) name of customer;

c) name of forms;

d) date of placement of order;

e) print-run of order;

f) date of sending of check copy;

g) date of issuance of forms to customer;

h) quantity of actually issued forms;

i) number of industrial waste disposal report;

j) annulment of incorrect entries;

k) note.

4. The information fields in order books shall be completed on a regular basis, according to the sequence of an order.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 10 - Requirements for printing strict accounting forms

1. Strict accounting forms shall be numbered using a numbering machine.

2. Strict accounting forms shall contain the initials of the producing printing enterprise and the customer, a registration number and an individual number (at least 6 digits). Neutral identity cards and neutral travel documents provided for by the Law of Georgia on the Procedure for Registering Citizens of Georgia and Aliens Residing in Georgia and for Issuing Identity (Residence) Cards and Passports of a Citizen of Georgia shall contain only a registration number without the initials of the Ministry of Finance of Georgia and an individual number (at least 6 digits).

Law of Georgia No 4992 of 1 July 2011 - website, 15.7.2011

Article 11 - Examination and utilisation of strict accounting forms

1. The examination and utilisation of strict accounting forms shall be conducted in accordance with the procedure established by the legislation of Georgia.

2. The examination and utilisation of strict accounting forms shall be conducted by the Agency as well as by the National Bank of Georgia within its competence.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Law of Georgia No 4193 of 3 September 2015 – website, 10.09. 2015

Law of Georgia No 445 of 10 March 2017 – website, 22.03.2017

Article 12 - (Deleted).

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Chapter II¹ - Fees for the Registration and Examination and Utilisation of Strict Accounting Forms

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 11¹ - Determining fees and their rates for services provided by the Agency

1. The fee for the registration and examination and utilisation of strict accounting forms is a mandatory payment, including value added tax (VAT), established by this Law for services provided by the Agency.

2. The fees for the registration and examination and utilisation of strict accounting forms shall be established and their rates shall be determined by this Law.

3. An interested person shall pay the fee determined by this Law for services provided by the Agency within the time frame established by the legislation of Georgia.

4. Based on the request of an interested person, services may be provided within a time frame shorter than that established by the legislation of Georgia.

5. Where the Agency provides an accelerated service, an interested person shall pay the respective fee established for such service.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 11² - Rates of fees for services provided by the Agency

The rates of fees for services provided by the Agency are:

a) for the registration of one sample (draft) of a strict accounting form - GEL 50;

b) for the examination and utilisation of not more than 5000 strict accounting forms having the same registration number - GEL 50.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 11³ - Time frames for services provided by the Agency

The following time frames are established for services provided by the Agency:

a) for the registration of one sample (draft) of a strict accounting form - 20 working days;

b) for the examination and utilisation of not more than 5000 strict accounting forms having the same registration number - 20 working days.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 11⁴ - Rates of fees and time frames for an accelerated service provided by the Agency

1. The service fee for the registration of one sample (draft) of a strict accounting form within two working days after the receipt of an application for registration shall be GEL 100.

2. The service fee for the examination and utilisation of not more than 5000 strict accounting forms having the same registration number after the receipt of an application for examination and utilisation is GEL 150.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 11⁵ - Procedure and conditions for paying service fees

1.  Service fees shall be paid in advance in a cash or non-cash form before a respective service is provided.

2. A non-cash settlement shall be made under the procedure established by the legislation of Georgia.

3. A cash settlement shall be made in national currency in a bank, followed by the issuance of a receipt of an established form.

4. Paid service fees shall be transferred to the account of the Agency.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 11⁶ - Procedure for the refund of paid service fees

1. If a service fee is paid in the amount exceeding the rate determined by this Law, the payer shall be returned the difference between the paid amount and the rate determined by this Law.

2. Fees paid for services shall be fully refunded if:

a) the Agency refuses to provide a service where there is a legal ground for the refusal;

b) an interested person refuses to receive a service before it is provided;

c) the Agency fails to provide a service within the time frame established by this Law.

3. If an interested person cannot receive a service within the requested time frame based on the service fee he/she has paid and desires to take advantage of another time frame for which a smaller fee is provided for by this Law, the interested person shall be returned the difference between these two fees.

4. A paid service fee shall be returned partially or in full on the basis of the payer's application. The application shall be accompanied with a document confirming the payment.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 11⁷ - Exemption from payment of service fees

Institutions of the executive government, local self-government bodies and the tax authorities of Georgia shall be exempt from the payment of service fees as provided for by this chapter.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Law of Georgia No 3372 of 6 July 2010 - LGH I, No 40, 20.7.2010, Art. 250

Law of Georgia No 3806 of 12 November 2010 - LGH I, No 66, 3.12.2010, Art. 414

Chapter II² - Liability for Violations of this Law

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Article 11⁸ - Liability for violations of this Law

The liability for violations of this Law is determined by the legislation of Georgia.

Law of Georgia No 2350 of 15 December 2009 - LHG I, No 47, 28.12.2009, Art. 360

Chapter III - Transitional and Final Provisions

Article 13 - Transitional provisions

1. The Ministry of Finance of Georgia shall approve the list of strict accounting forms within three months from the entry into force of this Law.

2. Legal entities shall, within four months from the entry into force of this Law, ensure the compliance of the strict accounting forms to be used by them with the requirements of this Law.

3. The Ministry of Finance of Georgia shall, within three months from the entry into force of this Law, ensure the compliance of respective subordinate normative acts with this Law.

Article 14 - Normative acts to be repealed in connection with the entry of this Law into force

From 1 July 2005, the following shall be deemed repealed:

a) Edict No 321 of the President of Georgia of 26 July 2000 on Measures for Ensuring the Establishment of a State-controlled Order for the Development, Production, Storage and Use of Strict Accounting Forms and Documents;

b) Decree No 1079 of the President of Georgia of 6 September 1999 on Some Measures for Regulating the Development, Production, Storage and Use of Lottery Tickets, Strict Accounting Forms and Documents;

c) Order No 50 of the Ministry of Finance of Georgia on Procedure for the Production and Use of Strict Accounting Forms and Documents.

Article 15 - Entry into force of the Law

This Law shall enter into force upon its promulgation.

President of Georgia                                                                                                                                M. Saakashvili

Tbilisi

22 March 2005

No 1134-Iს