Manila, Philippines – On Monday, December 9, Marcos signed Republic Act No. 12079 creating a Value Added Tax (VAT) Refund System for foreign tourists on locally purchased goods.
Under this law, tourists can claim a refund on the VAT of goods personally purchased at accredited retail outlets and stores.
The system is applied provided that the goods are taken out of the country within 60 days with a minimum transaction of P3,000.
Marcos noted that this law has an estimate of almost 30% increase in tourist spending, that is expected to benefit both large-scale industries, as well as micro, small, medium enterprises (MSMEs).
He further cited that the VAT Refund mechanism will not only alleviate tourist spending but also promote Philippines as a ‘premier global shopping destination,’ making to more accessible for global consumers and global market.
The implementing rules and regulation for this new law shall be headed by the Department of Finance (DF) and of the Bureau of Internal Revenue (BIR).