- The Philippines has implemented a new VAT refund scheme for foreign tourists.
- Foreign passport holders who purchase goods worth at least P3,000 from accredited stores can apply for a VAT refund.
- The threshold will be adjusted every three years to account for inflation.
- Tourists must take the goods out of the country within 60 days of purchase and cannot consume them locally.
- Eligible items include clothing, electronics, gadgets, jewelry, accessories, souvenirs, food and non-food consumables, and other personal-use goods.
- Tourists will receive refunds electronically or in cash.
- The government sees the VAT refund scheme as a way to enhance tourism spending and stimulate economic activity.
- The Department of Finance will hire a reputable and internationally recognized VAT refund operator.
- The Philippines joins other ASEAN nations that offer VAT refund policies to attract high-spending tourists.
- The country aims to position itself as a premier shopping and leisure destination.
- President Ferdinand Marcos Jr. signed the VAT Refund for Non-Resident Tourists Act into law in December 2024.
- Over 5.9 million foreign tourists arrived in the Philippines in 2024.
Source: brigadanews.ph
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
