President Ferdinand R. Marcos Jr. has signed a law allowing non-resident tourists to claim a refund on the Value Added Tax (VAT) for locally purchased goods.
The law aims to boost tourism by encouraging higher spending and promoting the Philippines as a global shopping destination.
In his speech in Malacañang, Marcos Jr. highlighted that shopping has become a key part of the travel experience.
In 2023, tourism contributed 8.6 percent to the GDP, with shopping being the second-largest expenditure for inbound tourists.
“With this in mind, we are introducing the VAT refund program for non-resident tourists—designed not only to stimulate more spending but to promote the Philippines as a premier global shopping destination,” he said.
Under this program, tourists can claim refunds on purchases of at least P3,000 from accredited stores, provided the goods are taken out of the country within 60 days.
The President estimates the program could increase tourist spending by 30 percent, benefiting both large industries and micro, small, and medium enterprises. He cired Marikina shoes as an example of local products that could gain more global visibility.
“These products tell our story, and now, with the VAT refund, they will be able to be more accessible to global consumers, elevating once again our stature in the global market,” according to him.
To ensure smooth implementation, Marcos Jr. ordered the Department of Finance and the Bureau of Internal Revenue to craft rules and regulations for the VAT refund process.IMT
