Foreign tourists visiting the Philippines now have an exciting reason to shop more! On Monday, government officials signed the official rules and regulations for the VAT Refund for Non-Resident Tourists, allowing foreign visitors to claim a refund on value-added tax (VAT) for goods purchased from accredited stores.
Who Can Get a VAT Refund?
Under Republic Act 12079, tourists holding a foreign passport can apply for a VAT refund if they spend at least ₱3,000 on eligible goods. However, these items must be taken out of the country within 60 days of purchase.
How Will It Work?
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The Philippine government will partner with trusted international VAT refund operators to ensure a smooth refund process.
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Refunds may be given electronically or in cash, providing convenience for tourists.
Why Is This a Big Deal?
Finance Secretary Ralph Recto emphasized that the VAT refund system is designed to attract more tourists, encourage them to stay longer, and spend more in the country.
“Every ₱100 spent by a tourist generates ₱197 in economic output,” Recto explained. “More tourist spending means more businesses, more jobs, and higher incomes for Filipinos.”
Boosting the Philippines as a Shopping Haven
The initiative follows President Ferdinand “Bongbong” Marcos Jr.’s push to promote the Philippines as a top shopping and travel destination. The goal? To ensure tourists leave the country with more than just souvenirs—but also a great experience and a desire to return!
“We don’t just welcome tourists with smiles—we give them a seamless experience with systems and policies that work!” Recto added.
With this new VAT refund system, shopping in the Philippines just got even more exciting! 
