Julia Christine Botin

Philippines now VAT-free for foreign tourists

Article (news)

Benise Balaoing

ABS-CBN News

MANILA -- Foreign tourists visiting the Philippines can now get a refund on the value-added tax (VAT) for items they bought in the country.In a statement, the Department of Finance (DOF) said non-resident tourists or foreign passport holders may now apply for a VAT refund for locally-purchased goods from accredited stores that are equivalent to at least P3,000. Covered items include retail and tangible goods, such as clothing, apparel, electronics, gadgets, jewelry, accessories, souvenirs, food or non-food consumables, and other goods intended for personal use.The items must be physically taken out of the Philippines by the tourist as accompanied baggage within 60 days from the date of purchase.The implementing rules and regulations also orders the DOF to get a reputable and internationally recognized VAT refund operator to help the government proces refunds. The refunds may be made electronically or in cash to enhance the ease of doing business.Finance Secretary Ralph Recto said he expects the Philipines to reap almost double the economic returns as it rolls out the VAT Refund for Non-Resident Tourists law.“With a multiplier effect of 1.97, every 100 pesos spent by a tourist generates 197 pesos in economic output. Imagine that. Halos doble ang balik sa ekonomiya,” he said at the signing of the law&#x27;s implementing rules and regulations.“And more money spent by foreign tourists means more businesses created, more Filipino workers hired, more jobs provided, higher incomes for our people, and more revenues for the government to collect. That’s the simple formula for growth,” he explained.The Philippine tourism industry saw all-time high visitor revenues from international tourists in 2024 at <a href="https://www.abs-cbn.com/news/business/2025/1/10/ph-sees-all-time-high-visitor-revenues-1743" rel="noopener noreferrer" target="_blank">P760 billion</a>.<div><iframe width="640" height="360" src="https://www.youtube.com/embed/7R2ZEVO15zs?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div>