Philippines Launches VAT Refunds to Boost Tourism Spending

• 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.

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