Expense management module › Global expense management › Mongolia
Last updated : 11.05.2026
Expense rules in Mongolia.
Mongolia applies VAT at 10%, one of the lowest rates in Asia. Mandatory electronic invoice (eVATsystem).
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1Expense rules & reclaimable VAT
VAT 10% single rate. eVATsystem: mandatory registration of all invoices.
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 10% | Deductible | eVAT + company RD |
| Lodging | 10% | Deductible | RD mandatory |
| Alcohol | 10% | Limited | Excluded from business meals |
| Fuel | 10% | Deductible | eVAT required |
| Transport | 10% | Deductible | Taxi/airfare |
| Client gifts | 10% | Non-deductible | Strict cap |
Receipt
eVAT invoice
RD mandatory
Meal cap
<= MNT 50,000/pers
Above: justify
SourcesMongolia Tax Authority
2Mileage allowance
No official mileage scale. Actual reimbursement on receipts.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel + tolls | On eVAT |
| Company car | – | Fuel card | – |
| Taxi | – | 100% on receipt | eVAT required |
Tracking
Logbook
Date, distance, purpose
SourcesMongolia Tax Authority
3Per diem and travel allowances
No official tax per diem. Company policy: Ulaanbaatar significantly more expensive.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Ulaanbaatar | MNT 25 000 | MNT 80 000 | MNT 140 000 |
| Erdenet | MNT 20 000 | MNT 65 000 | MNT 110 000 |
| Darkhan | MNT 18 000 | MNT 60 000 | MNT 100 000 |
| Other cities | MNT 15 000 | MNT 50 000 | MNT 85 000 |
Conversion
~1 EUR = 3,700 MNT
Variable
SourcesMongolia Tax Authority
4Foreign VAT recovery
VAT recovery limited to resident companies via monthly return. No non-resident recovery.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident companies | VAT credit | Monthly (10th) | VAT return |
| Non-resident companies | None | – | Final cost |
| Mining/SEZ | Special regime | – | Conventions |
Statute of limitations
4 years
Keep invoices
SourcesMongolia Tax Authority
Centralize your Mongolia expenses
Illizeo handles eVAT invoices, MNT/EUR conversion and VAT compliance for your teams in Mongolia.
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