Marcos enacts law creating VAT refund system for non-resident tourists

Manila Bulletin

President Marcos has signed into law that aims to attract more non-resident tourists to the country by providing them a Value Added Tax (VAT) Refund System on locally purchased goods. (Courtesy of RTVM)  READ: https://mb.com.ph/2024/12/9/marcos-enacts-law-creating-vat-refund-system-for-non-resident-tourists  Subscribe to the Manila Bulletin Online channel! - https://www.youtube.com/TheManilaBulletin  Visit our website at http://mb.com.ph Facebook: https://www.facebook.com/manilabulletin Twitter: https://www.twitter.com/manila_bulletin Instagram: https://instagram.com/manilabulletin Tiktok: https://www.tiktok.com/@manilabulletin  #ManilaBulletinOnline #ManilaBulletin #LatestNews

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00:00Now, as we move from the fields to the bustling streets and markets, let us turn our attention

00:06to another key driver of our economy, tourism.

00:11It is no secret that shopping has become an essential part of the travel experience, and

00:16we are poised to capitalize on that momentum.

00:20In 2023, the Philippine tourism sector played an instrumental role in our nation's economic

00:26recovery, contributing an impressive 8.6% to the GDP.

00:33Within this significant share, shopping emerged as the second largest expenditure for inbound

00:39tourists.

00:40With this in mind, we are introducing the VAT Refund Program for Non-Resident Tourists,

00:46designed not only to stimulate more spending, but to promote the Philippines as a premier

00:51global shopping destination.

00:54Under this program, tourists can claim a refund on the VAT for goods personally purchased

01:00at accredited retail outlets, provided these goods are taken out of the country within

01:0560 days and meet a minimum transaction requirement of 3,000 pesos.

01:13This initiative opens a new chapter in our tourism landscape, allowing the country to

01:19compete with other tourism markets that attract tourists who are eager to take home authentic,

01:25high-quality Filipino products.

01:28Former UNWTO Secretary-General Taleb Rify once said, shopping has converted into a determinant

01:37factor affecting a destination choice, an important component of the overall travel

01:43experience and, in some cases, the prime travel motivation.

01:48These words resonate deeply with our goals.

01:52The Philippines has long been a home for unique handcrafted items, and this VAT Refund Program

01:58will help put a spotlight to our rich local offerings.

02:03Our signature products, such as marikina shoes, the intricate hand-woven textiles from the

02:08northern provinces, the timeless craftsmanship of Filipino barong, all stand to benefit from

02:14this measure.

02:16These products tell our stories, and now, with a VAT refund, they will be able to be

02:22more accessible to global consumers, elevating, once again, our stature in the global market.

02:30The economic impact of this measure is projected to be substantial, estimating an almost 30%

02:37increase in tourist spending.

02:39This surge will benefit both larger-scale industries and micro-, small- and medium-enterprises,

02:46an important pillar of our local economy.

02:50Tourists who have a positive shopping experience are more likely to return with their friends

02:54and their families, supporting our goal to become a premier shopping destination in Southeast

03:00Asia.

03:02As we move forward, I urge the Department of Finance and the Bureau of Internal Revenue

03:08to craft implementing rules and regulations that will make this VAT refund process simple,

03:14accessible, and culturally inclusive.

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