Why does Mongolia return the VAT to its citizens?

Mongolian Taxation Authority had difficulty collecting the VAT, so they made several ingenious moves so that people would voluntarily pay for it.

They were able to receive VAT from big department stores, supermarkets, but kept losing out from small mom-and-pop operations. In order to pay a VAT you need to earn at least 10 million MNT (roughly 4,000USD) per annum. This is a small amount and basically all of the…