Mongolia raises the VAT registration threshold from MNT 50 million to MNT 400 million from 1 January 2027
- Jurisdiction
- Mongolia
- Tax
- VAT
- Change type
- Threshold
- Status
- Enacted
- Impact
- Plan ahead
- Announced
- 26 June 2026
- Effective
- 1 January 2027
- Authority
- Legal Information Centre, Ministry of Justice and Home Affairs of Mongolia (legalinfo.mn)
- Systems
- Tax engine, ERP, Invoicing
- Verified
- Fetched from official source · high confidence
Mongolian businesses with annual sales below MNT 400 million, and withholding-VAT payers under Article 5.2.
Review Mongolian VAT-registered entities with annual sales under MNT 400 million before 1 January 2027 for deregistration eligibility, and update registration-threshold logic in tax engines.
Tax engineERPInvoicing
Mongolia's law of 26 June 2026 amending the Law on Value Added Tax raises the VAT registration and exemption threshold from MNT 50 million to MNT 400 million of annual sales, with effect from 1 January 2027. The consolidated Law now provides that persons supplying goods, works or services below MNT 400 million a year (other than imports) are exempt, and the same amendment applies to the withholding-VAT-payer registration threshold in Article 5.2. The threshold for voluntary registration in Article 6.5 changes from 20 to 2.5 (percent of the Article 5.2 amount).
What changed in detail
Mongolia’s law of 26 June 2026 amending the Law on Value Added Tax raises the VAT registration and exemption threshold from MNT 50 million to MNT 400 million of annual sales, with effect from 1 January 2027.
The consolidated Law now provides that persons supplying goods, works or services of less than MNT 400 million a year (other than imports) are exempt. The same amendment applies to the withholding-VAT-payer registration threshold in Article 5.2. The threshold for voluntary registration in Article 6.5 changes from 20 to 2.5, expressed as a percentage of the Article 5.2 amount, so the effective voluntary threshold stays at MNT 10 million (2.5% of 400 million, as before 20% of 50 million).
What it means
The threshold is eight times higher, so many small businesses currently registered, or about to register, will fall below it from 1 January 2027. Whether to stay registered voluntarily depends on input VAT recovery, and the voluntary route is tied to the Article 5.2 amount by the 2.5 factor. Imports are outside the exemption, since the text excludes them.
Proof
13.6.Жилийн 400 саяас доош төгрөгийн бараа, ажил, үйлчилгээ борлуулсан этгээд /импортоор оруулахаас бусад/-ийг албан татвараас чөлөөлнө. /Энэ хэсэгт 2026 оны 06 дугаар сарын 26-ны өдрийн хуулиар "50" гэснийг "400" гэж өөрчлөлт оруулсан бөгөөд 2027 оны 01 дүгээр сарын 01-ний өдрөөс эхлэн дагаж мөрдөнө./13.6. A person who sold goods, works or services worth less than MNT 400 million a year (other than imports) is exempt from VAT. (In this part "50" was changed to "400" by the law of 26 June 2026, in effect from 1 January 2027.)
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