Foreign tourists visiting the Philippines can now apply for a refund on the value-added tax (VAT) for purchases made from accredited stores, the Department of Finance (DOF) announced.
To qualify, non-resident tourists or foreign passport holders must spend at least P3,000 on locally purchased goods such as clothing, electronics, jewelry, souvenirs, and consumables. The items must be taken out of the country as accompanied baggage within 60 days of purchase.
The refund process will be facilitated by an internationally recognized VAT refund operator, ensuring efficiency through electronic or cash refunds.
Finance Secretary Ralph Recto emphasized the economic benefits, stating that every P100 spent by tourists generates P197 in economic output. He added that increased tourist spending leads to job creation, business growth, and higher government revenues.
The Philippine tourism industry reached an all-time high of P760 billion in visitor revenues in 2024, underscoring the sector’s significant role in economic growth.