Good news for foreign tourists visiting the Philippines. Starting today, you can now get a refund of value-added tax (VAT) for products purchased in the country.
In a statement, the Department of Finance (DOF) said that non-resident tourists or foreign passport holders may apply for VAT refund for locally-purchased goods from accredited stores, provided that the amount is not less than P3,000.
Covered Products
According to the DOF, products covered by VAT refunds include retail and tangible goods such as:
Clothing and apparel
Electronics and gadgets
Jewelry and accessories
Souvenirs and food items
Personal-use items
To be eligible for a refund, the purchased product must be taken out of the country as accompanied baggage within 60 days from the date of purchase.
Simplified Refund Process
According to the DOF, the government will hire a reputable and internationally recognized VAT refund operator to assist in processing refunds. This can be done electronic or cash refund to facilitate the transaction.
Huge Impact on the Economy
Finance Secretary Ralph Recto expects this new law to bring great economic benefits.
"With a multiplier effect of 1.97, every P100 spent by a tourist generates an economic output of P197. The return to the economy is almost double," Recto said in signing the implementing rules and regulations of the law.
"More money spent by foreign tourists means more businesses, more jobs created, higher income for our countrymen, and greater revenue for the government," he added.
