The Mongolian Government has submitted a comprehensive VAT reform package to Parliament, introducing major changes such as full deductibility of reverse‑charged VAT on foreign services, immediate deduction of capital expenditure VAT, a simplified regime for businesses below MNT 400 million, and a one‑to‑two‑month deferral of monthly VAT payments. The standard VAT rate remains 10%.
The amendments clarify that reverse‑charged VAT on services received from non‑residents is fully deductible for Mongolian VAT‑registered companies.
Input VAT on capital assets will now be fully and immediately deductible, replacing the current 5‑10 year spread deduction.
Businesses with turnover below MNT 400 million can apply a deemed purchase mechanism, treating 90% of quarterly sales as deemed purchases, simplifying input VAT calculations.
Compliant taxpayers may defer monthly VAT payments, including import VAT, by one to two months.
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VatCalc · about 24 hours ago
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VatCalc · 5 days ago
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