Foreign tourists in the Philippines can now enjoy tax-free shopping, thanks to the newly signed implementing rules and regulations (IRR) for the VAT Refund for Non-Resident Tourists program. The measure, signed by Finance Secretary Ralph Recto, Bureau of Customs Commissioner Bienvenido Rubio, and Bureau of Internal Revenue Deputy Commissioner Marissa Cabreros, allows foreign passport holders to claim VAT refunds on goods worth at least P3,000, provided they take them out of the country within 60 days of purchase.
To ensure smooth transactions, the government will work with established VAT refund operators to handle electronic or cash refunds.
Boosting Tourism and the Economy
Officials believe this initiative will encourage more tourist spending, benefiting local businesses and generating jobs. Recto highlighted the program’s economic impact, noting that every 100 pesos spent by a tourist translates to 197 pesos in economic output.
"More tourist spending means more businesses, more jobs, and higher revenues. We want them to stay longer, spend more, and enjoy a hassle-free shopping experience," Recto said.
The VAT refund program is part of the government's broader effort to enhance the Philippines' appeal as a top shopping and travel destination in Asia.
Strengthening the Philippines’ Tourism Appeal
President Ferdinand Marcos Jr. signed the measure into law last December to attract high-spending travelers and position the country as a premier global shopping hub. Tourism Secretary Christina Garcia-Frasco emphasized that the initiative aligns with efforts to improve visitor experience and streamline processes.
"Tourists should leave with more than just souvenirs. They should remember the Philippines as a place that delivers great experiences, with policies that make their stay easy and enjoyable," Recto added.
