Foreign tourists visiting the Philippines can now claim value-added tax (VAT) refunds for certain items bought locally, the Department of Finance (DOF) announced.
Under the new rules, non-resident visitors holding foreign passports may apply for VAT refunds on goods purchased from accredited stores, provided the total value is at least ₱3,000. Eligible items include clothing, electronics, jewelry, souvenirs, and other retail products meant for personal use.
To qualify, the items must be taken out of the country within 60 days of purchase as part of the tourist’s accompanied baggage.
The government has also committed to tapping an internationally recognized VAT refund operator to streamline the refund process, which may be done electronically or in cash.
Finance Secretary Ralph Recto said the initiative is expected to boost the economy. “Every ₱100 spent by a tourist generates ₱197 in economic output. That’s nearly double the return,” he said during the signing of the implementing rules.
The country’s tourism sector hit a record high in 2024 with international tourist receipts reaching ₱760 billion.
