On July 1, United States Ambassador Piper Anne Wind Campbell and Mongolian Vice Minister of Finance, Purev Surenhav, celebrated the formal launch of the Value Added Tax (VAT) E-Invoice and Customs E-Payment Systems. With support from the U.S. Agency for International Development’s (USAID) Business Plus Initiative project, the General Department of Taxation (GDT) and Customs General Authority (CGA) have streamlined the process for businesses to meet their tax and customs obligations.
These systems aim to simplify online reporting, offer access to real-time payment information, and provide state-of-the art security for the transmission of financial information. Electronic VAT invoices and customs payments are expected to reduce the administrative burden on businesses and government. Companies will save time and money as inefficiencies are removed. Since electronic payments encourage transaction transparency, the government has the potential to increase revenue through a reduction in fraud and tax evasion.
Since a soft launch of the new customs system on 8 June 2015, Mongolian Customs has processed over 40,000 transactions and collected over 60 billion MNT in payments. “In the past, the clearance process could involve several trips to the bank and CGA by traders. With this powerful solution not only is it quick, it is also easy to move goods across the border,” said CGA IT Department Head B. Ganzorig.
In her remarks, Ambassador Campbell noted: “These new e-systems demonstrate the American and Mongolian governments’ shared vision to advance the economic development of Mongolia with convenient, transparent, and effective government services.”
This initiative has been part of USAID’s broader collaboration with the Government of Mongolia to streamline doing business and improve government transparency and efficiency in order to promote economic development.