By Elena Fehrbach
On June 7th, the Parliament of Mongolia has reviewed the Law on Exemption from VAT and the Law on Exemption from Customs Duty. The following additional regulations which are directly related to the Laws have been approved:
- Regulation “Addition to the Parliament Decree”. According to the Regulation, import of new buses and trolleybuses produced not more than 1 year ago, models with 24 seats/48 passengers capacity will be exempt from VAT and will be subject to zero percent customs duty. Regulation is effective from 1 January 2014 to 31 December 2016.
- The Law on exemption from customs duty – Regulation for certain oil and gas projects. Regulation is applied to the imported equipment, including spare parts and special purpose construction materialsthat will be used in certain oil and gas projects. Oil and gas projects cover production of petroleum products from oil, shale oil and coal. These projects are assumed to be exempt from both VAT and customs duty. The Regulation will be effective from 7 June 2013 up until 31 December 2018.
- The Law on exemption from customs duty – Wooden products. Based on the new Regulation effective from 7 June 2013 up until 31 December 2017, import of round wood, timber wood, oriented stand board, cut wooden materials and construction wood-frame ready for assembly are exempt from both VAT and customs duty.