G.Zandanshatar, Prime Minister of Mongolia, announced that the value-added tax (VAT) refund will be increased from the current 2% to 5%, calling it a step forward in transparency and citizen engagement.
“The taxes you pay are the most valuable asset of the country,” said the Prime Minister. “The first good news is that the VAT refund will be increased to 5%. I will implement this initiative, which received strong public support two years ago. The second good news is that the 2026 state budget will be drafted not only by officials but also with public input. Your suggestions are invaluable.”
Under the current law, consumers receive a 2% VAT refund. In 2024, VAT collections totaled MNT 1.1 trillion, and the amount collected in the first half of 2025 has already reached MNT 1 trillion, 80 billion and 300 million.
The government expects the increased refund rate to encourage more consumers to demand VAT receipts, helping to reduce tax evasion by some retailers who charge inconsistent prices with and without VAT.
G.Zandanshatar, Prime Minister of Mongolia, announced that the value-added tax (VAT) refund will be increased from the current 2% to 5%, calling it a step forward in transparency and citizen engagement.
“The taxes you pay are the most valuable asset of the country,” said the Prime Minister. “The first good news is that the VAT refund will be increased to 5%. I will implement this initiative, which received strong public support two years ago. The second good news is that the 2026 state budget will be drafted not only by officials but also with public input. Your suggestions are invaluable.”
Under the current law, consumers receive a 2% VAT refund. In 2024, VAT collections totaled MNT 1.1 trillion, and the amount collected in the first half of 2025 has already reached MNT 1 trillion, 80 billion and 300 million.
The government expects the increased refund rate to encourage more consumers to demand VAT receipts, helping to reduce tax evasion by some retailers who charge inconsistent prices with and without VAT.