2 days ago
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Louella Desiderio - The Philippine Star
March 30, 2025 | 12:00am
“This will encourage more tourist spending, which means more revenue for local stores, more jobs for Filipinos and more growth for our economy, especially our local artisans and businesses,” Special Assistant to the President for Investment and Economic Affairs Frederick Go said.
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MANILA, Philippines — The retail industry is expecting to see a revenue boost following the signing of rules to implement the value-added tax (VAT) refund for foreign tourists.
“This will encourage more tourist spending, which means more revenue for local stores, more jobs for Filipinos and more growth for our economy, especially our local artisans and businesses,” Special Assistant to the President for Investment and Economic Affairs Frederick Go said.
Go said Filipinos traveling abroad have experienced the VAT refund process in other countries and the signing of the rules would now make the system a reality in the Philippines.
Philippine Retailers Association (PRA) president Roberto Claudio welcomed the signing of the rules for the VAT refunds as the measure is expected to drive revenues for retailers.
“This will boost our local retail industry, as well as increase tourist arrivals in our tourism industry. We were the only country in Asia that didn’t have this incentive. This will boost our economy too,” Claudio said.
Earlier, Claudio said the PRA is expecting a 10- to 15-percent increase in revenues this year from the estimated P4.7 trillion last year.
Apart from the implementation of the VAT refund system for tourists, he said higher foot traffic and online shopping are also expected to support the retail industry’s revenue growth.
“We are looking forward to 2025 to be a banner year,” he said.
Finance Secretary Ralph Recto, Bureau of Customs Commissioner Bienvenido Rubio and Bureau of Internal Revenue deputy commissioner Marissa Cabreros recently signed the implementing rules and regulations (IRR) for Republic Act 12079 or the VAT Refund for Non-Resident Tourists Act.
Under the IRR, non-resident tourists or foreign passport holders may apply for a VAT refund for goods worth at least P3,000 that are purchased from accredited stores in the country.
Goods covered by the VAT refund are clothing, electronics, gadgets, jewelry, accessories, souvenirs, food or non-food consumables, as well as other goods intended for personal use.
Tourists should take these goods out of the country as accompanied baggage within 60 days from the date of purchase.
