The Philippines has introduced a new Value-Added Tax (VAT) refund system aimed at encouraging more spending by tourists and boosting the country’s retail sector. The Department of Tourism (DOT) Secretary, Christina Garcia Frasco, expressed confidence that the newly implemented VAT Refund for Non-Resident Tourists law will significantly benefit the nation’s tourism industry.
Her comments followed the ceremonial signing of the Implementing Rules and Regulations (IRR) for Republic Act No. 12079 on March 24, 2024, at the Department of Finance (DOF) in Manila.
The legislation, signed into law by President Ferdinand Marcos Jr. in December 2024, allows non-resident tourists to claim a VAT refund on local purchases of at least PHP 3,000. To qualify, the goods must be taken out of the country within 60 days of purchase.
Frasco highlighted that this move is not just about making the Philippines a more attractive shopping destination, but also about stimulating economic growth by encouraging tourists to spend more.
“The implementation of the VAT refund law comes at a time when tourism spending is at an all-time high,” Frasco said. “According to the World Travel and Tourism Council, tourists in the Philippines spend more per capita than those in other ASEAN countries, with each spending no less than 2,073 US dollars. We expect that this new system will bring even more benefits to local tourism, especially in shopping tourism.”
The Tourism Secretary also emphasized the government’s responsiveness, noting that the swift implementation of both the VAT refund law and its IRR shows that President Marcos’ administration prioritizes the welfare of Filipinos.
“What the quick action on this law signifies is that under President Ferdinand R. Marcos Jr.’s leadership, this government listens, acts, and puts the welfare of the Filipino people first,” Frasco added.
Frasco also discussed the broader economic impact of the new measure, explaining that it will not only benefit retail but also positively affect sectors such as accommodations, transportation, and other related services.
She thanked President Marcos for his decisive leadership in signing the VAT Refund Law and praised the teamwork between government agencies and the private sector. “We are grateful for the President’s clear vision for the country’s global competitiveness. Through continued collaboration, we are confident the Philippines will become the tourism powerhouse it deserves to be,” Frasco concluded.
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