Foreigners are able to receive VAT giveback

2016-01-14 14:17:16

Beginning on the 1st of  January of this year, the new law on VAT /value added tax/ came into force, and tax payers started to take back 20% of value-added tax.

In accordance with the law, a tax payer is described as a person who purchases products or services, not a person selling something in any forms. Moreover, the tax payer is supposed to take back up to 20% of VAT on the purchase made within a year, and he or she is able to be involved in a lottery with prize fund of up to 100 million Togrog.

The law on VAT is served the same to foreigners as Mongolian citizen, but a citizen from a foreign country must have an account at a commercial bank here in order to receive the VAT take back. Through the document, they are able to be registered at the website, and it is prohibited to be registered at the website by others’ documents.   

N.Enkhbat:  Head of the Strategic Department of VAT at the General Taxation Office

- Foreign citizens must open an account at any commercial bank in Mongolia using their valid documents. If that foreign citizen becomes the lottery winner, he or she can transfer the money to a bank of a country where they are from. This right is applied to all foreigners residing in Mongolia with valid visa.

For the time being, the website is only in Mongolian language, and preparation works are being done to translate the website into English, the Taxation Office said.

The VAT law provides foreigners with a right to take back VAT through domestic commercial banks. In the next turn, a system will be introduced to give back VAT money to foreigners at border checkpoints by bills.