Philippines: Bill allowing nonresident tourists to apply for VAT refunds approved by Senate
Bill has yet to be signed into law
Share
November 8, 2024
Senate Bill No. 2415, which would allow nonresident tourists to apply for value added tax (VAT) refunds, was approved by the Senate on September 23, 2024.
Under the law, a tourist would be eligible for a VAT refund on locally purchased goods, which may be made either electronically or in cash, provided that the following requirements are met:
- The goods are purchased in person by the tourist in duly accredited stores
- Such goods are taken out of the Philippines by the tourist within 60 days from the date of purchase
- The value of goods purchased per transaction is equivalent to at least P3,000, provided that the threshold would be subject to review and adjustment every three years by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue
The bill must still be signed into law to become effective.
Read a November 2024 report prepared by the KPMG member firm in the Philippines