Ulaanbaatar
Almost million people to receive VAT refunds worth MNT 146 billion
Economy
Ulaanbaatar /MONTSAME/. The General Department of Taxation delivered press briefings on the implementation of the Law on Valued-Added Tax (VAT) and online tax services on January 29.
Last year, the taxation authority contributed a total of MNT 4.5 trillion to the state budget and 24 percent of which or MNT 1.88 trillion was made up of VAT revenues.
Since 2016, following the revised VAT Law, Mongolia, as an effort to improve VAT compliance, has been issuing reimbursement of up to 20 percent of VAT to consumers for their purchases of goods and services each year. Also, a monthly lottery is arranged to encourage consumers to ask for receipts, which are their lottery tickets, from traders with a view to ensure VAT collection.
The VAT collection increased by 94 percent compared to 2016 thanks to the economic incentives for consumers, the officials report.
During the first year, around 499 thousand consumers were reimbursed MNT 35.1 billion in total. In 2019, 796 thousand people received refunds worth MNT 121.6 billion.
Moreover, the lottery prize awarded in 2016 equaled MNT 6.9 billion. In 2019, prize fund grew to MNT 18.7 billion and 312 thousand people won the lotteries.
Corresponding authorities are also checking some suspicious activities on the VAT online system, with 1.1 million active registered users. For instance, a user registered 8392 receipts worth MNT 346 million last year. Another user registered 16 receipts worth MNT 73 million in a day.
This year, 996 thousand consumers will be receiving VAT refunds worth around MNT 146 billion for their purchases made in 2019. A total of 333 million receipts of purchases made in 2019 were registered.
Thanks to recent updates on the VAT online application, users are able to not only register their receipts, but also pay vehicle taxes and fees for government services.
The refunds of 2019 will be issued within the first quarter of 2020.
