Good news for international travelers—tourists visiting the Philippines can now claim VAT refunds on their purchases! Thanks to a new law signed by President Ferdinand R. Marcos Jr., foreign visitors will be able to get a refund on the Value Added Tax (VAT) for items bought in accredited stores. This initiative is set to boost tourism spending and promote local products.
During a ceremony at Malacañang, President Marcos emphasized the importance of shopping in the travel experience.
“In 2023, the Philippine tourism sector played a crucial role in our economic recovery, contributing 8.6% to the GDP,” he stated, noting that shopping was the second-largest expense for inbound tourists.
To qualify for the VAT refund, tourists must spend at least P3,000 (US$50) and take the purchased goods out of the country within 60 days. The government expects this move to increase tourist spending by 30%, benefiting businesses both big and small—including local artisans, such as Marikina shoemakers.
The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) are currently working on the program’s rules and regulations to ensure a seamless refund process. The DOF estimates that annual VAT refunds could range between P2.9 billion (US$49 million) and P4.1 billion (US$69 million). However, officials believe these costs will be outweighed by the expected rise in tourism and consumer spending.
“This VAT refund will make Philippine products more accessible to global consumers,” President Marcos added.
With this new policy in place, shopping in the Philippines just got even more exciting for international travelers!