Summary
- The Philippine Supreme Court En Banc dismissed a petition challenging RA 12079 and declared the VAT refund for non‑resident tourists constitutional. [sc.judiciary.gov.ph]
- Refunds apply to purchases ≥ PHP 3,000 per transaction from accredited stores, provided goods leave the Philippines within 60 days. [sc.judiciary.gov.ph]
- The Court held that distinguishing foreign tourists from Filipino residents is a legitimate policy to stay competitive as a global tourist destination. [sc.judiciary.gov.ph]
Extended article
Republic Act 12079, which introduced Section 112‑A of the National Internal Revenue Code, was upheld in a decision penned by Associate Justice Amy C. Lazaro‑Javier. The Court held that the equal‑protection clause does not require identical treatment; distinguishing foreign tourists from citizens is reasonable and directly related to the law’s tourism‑promotion objective. The refund system also aligns with the destination principle of VAT — goods taken out of the Philippines within 60 days are consumed abroad and legitimately zero‑rated for the tourist. The SC noted that the Philippines is among the last Asian countries to adopt such a mechanism (Indonesia, Malaysia, Singapore, Thailand, Vietnam, China, Japan already have it). [sc.judiciary.gov.ph], [manilatimes.net]
Sources:
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