Inactive months: file zero, revoke status, or deregister?

Why this post

Since Order N38 came into force in March 2026, skipping a monthly declaration is no longer treated as filing a zero. If you’re an Individual Entrepreneur with Small Business Status (SBS) and you have a quiet month — or a quiet stretch — there are three legitimate options, not one.

This post helps you choose between them without overthinking it.

This is a practical summary, not legal advice. Always confirm with your accountant or the official sources.

The three options

Option 1: File a zero monthly declaration

This is the default and the simplest.

• You stay in SBS.
• You stay on the 1% rate the moment you have income again.
• Every month, you file a declaration with turnover = 0.
• You stay below the GEL 500,000 annual limit by default (you’re earning nothing this month).

Use this when you expect to have income again soon — within a few months — or when the cost of switching status is bigger than the cost of a 30-second monthly filing.

Option 2: Request revocation of your Small Business Status

You ask the Revenue Service to remove your SBS while keeping your PE registered.

• Your PE stays, but you fall back to the standard 20% personal income tax regime on any income going forward.
• You cannot re-apply for SBS until the tax year following the year of revocation. That’s the part most people miss.
• Monthly SBS-style declarations stop — but other obligations (annual return, etc.) continue.

Use this when you genuinely want to pause SBS-style monthly filings, you know you won’t need the 1% rate for the rest of this calendar year, and you’re fine being back on the standard regime if income returns earlier than expected.

Option 3: Fully deregister your PE

You close the Individual Entrepreneur entity itself.

• No more PE, no SBS, no monthly declarations.
• If you want to be a PE again later, you go through registration again.
• This is the cleanest exit if you’re leaving Georgia or no longer doing freelance work at all.

Use this when you are sure you don’t want to be a PE anymore. It’s the strongest of the three options.

A simple decision tree

Ask yourself in order:

1. “Will I have any PE income in the next 3–6 months?”

   • Likely yes → Option 1 (file zero each month).
   • Not really → continue to question 2.

2. “Do I want to come back to SBS this year?”

   • Yes → Option 1. Don’t revoke; you can’t re-apply this year.
   • No → continue to question 3.

3. “Am I staying a PE at all?”

   • Yes, but not SBS → Option 2 (revoke status, keep PE).
   • No → Option 3 (deregister).

If you’re unsure, default to Option 1. A zero declaration takes seconds and keeps every door open.

Common edge cases

“I’ll be travelling for two months — should I revoke SBS?”

No. Two months of zero is a Option 1 case. Set the filings up in advance (Auto in Taxocat, or two reminders if you prefer Manual) and move on with your trip.

“I have no income for the rest of the year and I’m thinking about closing the PE next year anyway”

This is the strongest case for Option 2 or even Option 3. Revoking SBS stops the monthly filing chore now; deregistering closes the whole entity if you’re sure.

“I earned over the GEL 500,000 limit and my SBS was revoked — when can I re-apply?”

Not until the next tax year. This rule was made stricter in 2026 — same-year re-application is no longer the default path.

“I closed my PE last month — do I still owe a monthly declaration?”

Once your PE is actually deregistered at the Revenue Service, monthly SBS obligations end. Make sure deregistration is complete on the system, not just submitted.

How Taxocat helps

If you stay in Option 1, Taxocat keeps your monthly rhythm boring on purpose:

• Empty months stay visible in the timeline — you can see at a glance whether March was zero or just unfiled.
• Auto mode files zero returns on schedule, the same way it files regular ones.
• Manual mode prepares each zero declaration so you can confirm it in seconds.

If you’re moving to Option 2 or Option 3, Taxocat is not the place to do that — it has to be done at the Revenue Service. But you can stop using Taxocat for that PE at any time without affecting your tax records there.

See also:

• /en/blog/order-n38-monthly-returns-mandatory/
• /en/blog/monthly-routine-checklist/
• /en/blog/manual-vs-automated-submission/

Official sources

• Order N38 of the Minister of Finance of Georgia (6 February 2026).
• Revenue Service of Georgia: https://www.rs.ge/