VAT receipts worth 2.1 billion MNT under inspection

The General Department of Taxation reported on Wednesday that more than 910,000 people will receive VAT refunds worth 146 billion MNT...

The General Department of Taxation reported on Wednesday that more than 910,000 people will receive VAT refunds worth 146 billion MNT.

Tax officials reported that most of the taxpayers’ financial documents to refund met the legal criteria, but financial documents of 996 citizens with receipt worth 2.1 billion MNT is under inspection.

The General Department of Taxation said it will complete review of VAT receipts this week and transfer the tax returns to the Ministry of Finance. Cabinet will decide when the tax refunds will be transferred to taxpayers.

Head of the Risk Management Division of the General Department of Taxation B.Batsaikhan reported on the inspection of VAT receipts, saying, “Receipts worth 2.1 billion MNT belonging to 996 citizens are under the inspection. During the inspection, we found that an employee of a mobile company registered over 8,400 receipts in a day. One worker of a fuel importer company registered 16 receipts worth 70 million MNT. Like these, there are many attempts to break the law and get huge amounts of refunds, which is why an inspection is necessary.”

If taxpayer's purchases met requirements of the law, refunds will be issued, assured tax officials.

Deputy Head of the Tax Revenue Division of the General Department of Taxation D.Tsogtjargal said, “The law on tax refund is being implemented under the order of the Ministry of Finance. The General Department of Taxation monitors and controls taxpayers' purchases of goods and services to see if they meet the criteria. Refunds can be canceled if the criteria isn’t met. Like that, if citizens who won money in the VAT lottery don’t meet the criteria, it is canceled under the law. The Mongolian tax authority has transferred 4.5 trillion MNT in tax revenue to the state budget in 2019. Out of this, 88.3 billion MNT, or 24 percent was from VAT. Between 2016 and 2019, the General Department of Taxation collected 3.3 trillion MNT in taxes and transferred it to the state budget. In 2016, 6.9 billion MNT was provided to VAT lottery winners. In 2019, the government granted 18.7 billion MNT to 312,800 citizens through the VAT lottery.”

Public complaints and feedback section is being added to the VAT registration system, tax officials reported.

Officials reported that tax refunds will be transferred to taxpayers when the ministry provides the required funding to Mongol Bank. Last year, the General Department of Taxation distributed 121 billion MNT to 808,000 taxpayers in tax refunds, which is 20 percent higher than the previous year’s.