Special InTAX: December 2024 Issue 1 | Volume 1

Office of the President

On 09 December 2024, Republic Act (RA) No. 12079, providing for a VAT refund mechanism for non-resident tourists was signed into law by the President.

The law provides a VAT refund mechanism for nonresident tourists (i.e., nonresident foreign passport holders), provided that the following requisites are present:

1. The goods are purchased in person by the tourist in duly accredited stores;
2. Such goods are taken out of the Philippines within sixty (60) days from the date of purchase; and
3. The value of goods purchased per transaction is equivalent to at least Three Thousand Pesos (PHP3,000), subject to review and adjustment every three (3) years.

The Philippine government will be engaging the services of one or more reputable, globally recognized, and experienced VAT refund operators to provide end-to-end solutions to the government for the establishment and operation of a VAT refund system for tourists.

The refund may be made either electronically or in cash.

The law will take effect after 15 days from its publication. The Implementing Rules and Regulations (IRR) is expected to be issued within ninety (90) days from the law’s effectivity.

(RGM&Co. Note:  The RA was published in the Official Gazette on 09 December 2024, which will take effect 15 days after or on 24 December 2024)

Here is the link to the full text of the issuance: Republic Act (RA) No. 12079.