The Philippines is taking a more serious approach to boosting its regional popularity by implementing a Value-Added Tax (VAT) exemption policy for foreign tourists.
Through this scheme, non-resident travelers can claim a tax refund on their purchases, making shopping in the Philippines more attractive and competitive compared to its neighboring countries.
Save More with VAT Refund
Under Republic Act No. 12079, also known as the "VAT Refund for Non-Resident Tourists," foreign visitors who shop in the Philippines can apply for a VAT refund on eligible purchases.
To qualify, purchases must be made at accredited stores with a minimum transaction value of PHP 3,000. Additionally, the purchased items must be taken out of the country within 60 days of purchase.
Eligible products under this program include fashion items, accessories, electronics, jewelry, souvenirs, and other consumer goods intended for personal use.
Tourists seeking a VAT refund must process their claims at designated international airports or seaports upon departure from the Philippines. They are required to present proof of purchase, a valid passport, a departure ticket, and the purchased items for verification.
Philippines Boosts Tourist Spending
The Philippine government aims to increase tourist spending by up to 30% through this policy, strengthening the country's position as a premier shopping destination in Southeast Asia.
Philippine Finance Secretary Ralph Recto emphasized that for every PHP 100 spent by tourists, the economic impact could nearly double, making this a highly beneficial strategy for the local economy.
Additionally, this policy seeks to attract more international tourists who have traditionally favored shopping destinations like Thailand and Singapore.
With the VAT refund incentive in place, the Philippines hopes to compete with other countries that have already implemented similar policies.
