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VAT refund law to boost Philippine tourism as shopping hub for foreign tourists—DOT

Published Mar 25, 2025 02:48 am

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Department of Tourism Secretary Christina Garcia-Frasco

The implementation of the Value-Added Tax (VAT) Refund for Non-Resident Tourists Law is expected to attract more foreign visitors and position the Philippines as a premier shopping destination in Asia, the Department of Tourism (DOT) said.

DOT Secretary Christina Garcia-Frasco emphasized that the signing of the law’s Implementing Rules and Regulations (IRR) on Mar. 24 at the Department of Finance (DOF) in Manila marks a key milestone in strengthening the country’s global tourism competitiveness.

Signed by President Ferdinand Marcos Jr. in December 2024, Republic Act No. 12079 allows foreign tourists to claim VAT refunds on goods worth at least P3,000, provided the items are taken out of the country within 60 days from the date of purchase.

Frasco said the measure is expected to drive growth not only in retail but also in accommodation, transportation, and other tourism-related sectors, generating more economic opportunities for businesses and workers.

She cited data from the World Travel and Tourism Council (WTTC) showing that the Philippines leads ASEAN in per capita tourist spending at $2,073 per visitor, underscoring the potential of the VAT refund system to further boost revenue from high-value travelers.

“The swift action of President Marcos in signing the VAT refund law and approving its IRR reflects a government that listens and acts for the benefit of the Filipino people,” Frasco said, expressing gratitude to the President for his decisive leadership and support for tourism-driven economic growth.

She also recognized the collaboration of government agencies and private sector stakeholders in advancing policies that enhance the country’s appeal to international travelers.

DOF Secretary Ralph Recto, Bureau of Customs Commissioner Bienvenido Rubio, and Bureau of Internal Revenue Deputy Commissioner Marissa Cabreros led the ceremonial signing, witnessed by Tourism Promotions Board COO Maria Margarita Nograles, Department of Trade and Industry Secretary Cristina Aldeguer-Roque, and Office of the Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go.

Also present were DOT Undersecretary Shahlimar Hofer Tamano, Duty Free Philippines Corporation Acting COO Patrick Joel Cinco, and representatives from the Philippine Tour Operators Association (PHILTOA), Philippine Hotel Owners Association (PHOA), Association of Tourism Officers of the Philippines (ATOP), Pacific Asia Travel Association (PATA) Philippines, and the Philippine Retailers Association.

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