BIR backs VAT refund for tourists, eyes tourism growth


The Bureau of Internal Revenue (BIR) fully supports the newly enacted Value-Added Tax (VAT) Refund for Non-Resident Tourists law (Republic Act No. 12079) to boost tourism and the economy.

In a Facebook post, BIR Commissioner Romeo D. Lumagui Jr. said that the bureau “supports the VAT Refund Mechanism for Non-Resident Tourists law and the National Government's initiative of attracting more international tourists and travelers into the country."

 

He added that “excellent taxpayer service includes the granting of tax refunds to taxpayers allowed by law to receive the same.”

The government’s new tax refund program allows tourists to get back the 12 percent VAT they paid on goods and services purchased in the Philippines.

But to be eligible for the refund, tourists must have a foreign passport, be non-residents of the Philippines, and have no business in the country.

Purchases must be made in person at accredited stores, taken out of the country within 60 days of purchase, and have a minimum value of P3,000 per transaction.

Tourists can claim their refunds electronically or in cash through authorized VAT Refund Operators.

Lumagui noted that “the BIR will do its part in promoting the Philippines as a world-class tourist destination.”