The Implementing Rules and Regulations (IRR) were signed by Finance Secretary Ralph G. Recto, Bureau of Customs (BOC) Commissioner Bienvenido Y. Rubio, and Bureau of Internal Revenue (BIR) Deputy Commissioner Marissa O. Cabreros. The event was witnessed by Department of Tourism (DOT) Secretary Cristina Frasco, along with key officials such as Department of Trade and Industry (DTI) Secretary Maria Cristina Aldeguer-Roque and Office of the Special Assistant to the President for Economic Affairs (OSAPIEA) Secretary Frederick D. Go. – Courtesy of the Philippine Department of Tourism Office
A landmark move aimed at boosting tourism and empowering shoppers to spend—and save—more in the country.
Manila, Philippines — Shopping in the Philippines just got even more rewarding. With the signing of the implementing rules and regulations (IRR) for Republic Act No. 12079, foreign tourists can now get a refund on the 12% Value-Added Tax (VAT) they pay on eligible goods purchased locally.
This much-anticipated VAT refund program was formally set into motion on March 24, 2025, and positions the Philippines among Southeast Asia’s tourist-friendly destinations that offer tax incentives to encourage spending.
What Tourists Need to Know
Under the new policy, non-resident foreign tourists can apply for a VAT refund when they:
• Show a foreign passport and proof of return or onward travel;
• Spend at least PHP 3,000 in a single transaction at accredited retailers;
• Take the purchased goods out of the country within 60 days of the transaction.
Eligible goods include tangible personal-use items such as apparel, electronics, food and non-food consumables, jewelry, and souvenirs. The refund will not apply to services such as hotel bookings or meals.
Tourism Secretary: “An Opportune Time”
Tourism Secretary Christina Garcia-Frasco emphasized the program’s broader benefits for the country’s tourism stakeholders and creative sectors.
“The signing of the VAT Refund Act by our President and the subsequent signing of the IRR come at an opportune time for our country, where tourism spending is at an all-time high,” she said in an official statement. “We foresee that with the implementation of this VAT refund act, we would be able to inure more benefits for our local tourism stakeholders in the component of shopping tourism, while supporting the creative arts.”
Frasco added that the ripple effect of the new law goes far beyond shopping:
“The ripple effect of the implementation of this law will be vast—not only in terms of retail, but most importantly, in terms of the sectors that will benefit from generated income from shopping, accommodations, transport, and other related services.”
She also credited the administration for its swift action:
“What the speed of the signing of the law and the signing of the IRR indicates is this: that under the administration of President Ferdinand R. Marcos Jr., this is a government that listens, that acts, and that puts forth the welfare of the Filipino people first and foremost.”
Economic and Government Backing
The IRR was signed by Finance Secretary Ralph G. Recto, BOC Commissioner Bienvenido Y. Rubio, and BIR Deputy Commissioner Marissa O. Cabreros, and was witnessed by Frasco along with other key officials including DTI Secretary Maria Cristina Aldeguer-Roque and OSAPIEA Secretary Frederick D. Go.Secretary Recto laid out the expected economic impact:
“With a multiplier effect of 1.97, every P100 spent by a tourist generates P197 in economic output. Halos doble ang balik sa ekonomiya.”
He further emphasized the importance of execution:
“We want more tourists to come — and we want them to stay longer, spend bigger, and transact with convenience.”
The Department of Finance (DOF) is working to deliver a world-class VAT refund system, using reputable international refund operators and enabling refunds to be issued in cash or electronically.
Collaboration Is Key
Frasco expressed gratitude to the administration and collaborating agencies, saying:
“We thank President Marcos for his decisive action in signing the VAT Refund Law, the Senate and House of Representatives for its passage, and we acknowledge the coordinated efforts of the different government agencies such as the DOF, BIR, BOC, DICT, DTI, OSAPIEA, and the private sector.”
She concluded with optimism: “We hope that by our continued collaboration, we can ensure that the Philippines emerges as a tourism powerhouse that it deserves to be.”
Whether you’re shopping for local art, electronics, or artisanal food, there’s now even more value in every purchase. The VAT refund isn’t just a financial incentive—it’s a sign that the Philippines is serious about making your visit exceptional.
Quick Guide: VAT Refund for Tourists in the Philippines
• Who’s eligible: Non-resident foreign tourists with valid passports
• Minimum purchase: PHP 3,000 per transaction
• Eligible items: Tangible goods for personal use only
• Refund method: Airport counters and future electronic systems
• Timeframe: Goods must leave PH within 60 days of purchase
