Philippines to Launch VAT Refund System for Tourists in 2025: Boost for Tourism and Retail Sectors

The Philippines is set to launch a Value-Added Tax (VAT) Refund System (VRS) for non-resident tourists in 2025, aiming to boost both tourism and the retail sector. The Department of Finance (DOF) has released draft implementing rules and regulations (IRR) for Republic Act 12079, outlining the guidelines for the VRS. Tourists can claim VAT refunds on retail goods purchased from accredited stores, provided the goods are taken out of the country as accompanied baggage within 60 days of purchase. A minimum purchase of P3,000 per transaction is required. Filipinos with dual citizenship can also avail of the refund using their foreign passport upon entry. The system involves multiple government agencies, with the DOF engaging VRS operators, the Department of Tourism promoting the system, and the Department of Trade and Industry encouraging retail participation. A public consultation on the draft IRR was held on March 17, 2025, paving the way for the system's implementation.