The Mongolian Ministry of Finance has drafted reforms to the Value Added Tax (VAT) Law, alongside amendments to the General Tax Law, Corporate Income Tax Law, and Personal Income Tax Law, as part of the Government’s 2024-2028 Action Plan, with public comments accepted until April 12, 2025, and implementation set for January 1, 2026. Key VAT changes include a progressive refund incentive for individuals on purchases, a new threshold requiring local entities with sales revenue exceeding MNT 400 million in 12 months to register as VAT payers, and expanded VAT deductions. Deductible input VAT now covers capital expenditures, services received in Mongolia, purchases assumed to include 10% VAT from third parties, passenger cars, and business-related events, training, and personal use within Corporate Income Tax Law limits. The drafts, published on the Ministry’s website, will be refined with public input before submission to the Government and Parliament for approval.
Source: pwc.com

Published Date:2025-03-28