The Department of Finance (DOF) has released the draft implementing rules and regulations (IRR) for the law that gives tourists in the Philippines their value-added tax refunds.
In a social media post on Tuesday evening, the DOF invited stakeholders to an online public consultation on the draft IRR of Republic Act (R.A.) No. 12079, otherwise known as “An Act Creating a VAT Refund Mechanism for Non-Resident Tourists.”
The draft IRR shall apply to VAT refund claims of tourists visiting the Philippines on their local purchases of eligible goods from duly accredited stores.
The IRR also outlines the roles of the implementing agencies, value-added-tax refund system (VRS) operators, and duly accredited stores in implementing the VRS.
R.A. No. 12079 was signed by President Ferdinand Marcos Jr. on Dec 9, 2024.
The draft IRR states that tourists shall be eligible for refunds of the VAT paid on locally purchased goods if they personally buy them in duly accredited stores; if the goods are physically taken out of the Philippines by the tourists as accompanied baggage, within 60 days from the date of purchase; and if the value of the goods purchased per single transaction is equivalent to at least P3,000, covered by a single invoice duly registered with the BIR.
The draft IRR states that the amount shall be adjusted using the cumulative inflation for the past three years as published by the Philippine Statistics Authority.
