PH tourists can now enjoy VAT refund

The refund is applicable in accredited stores for purchases worth at least PHP 3,000.

File photo: Boracay Beach, a popular tourist spot in PH. Shot on vivo V15 Pro

Tourist benefits in PH

The Philippines has formally implemented value-added tax refunds (VAT) for tourists.

This was marked by the signing of the VAT Refund for Non-Resident Tourists Act's implementing rules and regulations.

Citing the IRR, a Rappler report said that foreign passport holders may apply for a refund from accredited stores. The worth of the purchased goods should also be at least PHP 3,000 which will be adjusted every three years to account for inflation.

The purchased goods are not to be consumed while the tourist is in the Philippines and must be physically taken out of the country within 60 days from the date of purchase.

The VAT refund will only apply to retail and tangible goods such as clothing, electronics, jewelry, accessories, souvenirs, and food or non-food consumables.

Refunds will be given electronically or in cash.

The government hopes the law will encourage foreign tourists to stay longer and spend more in the Philippines.

Latest data show that nearly 6 million foreign tourists entered the country in 2024.

What do you think guys?

Source: DOF