The Philippines undertake a more serious approach to increasing their regional popularity by implementing a tax exemption policy (VAT) for foreign tourists.
Thanks to this program, non -resident travelers can apply for a tax refund on their purchases, due to which purchases within the Philippines are more attractive and competitive in comparison with neighboring countries.
Save more due to the VAT refund
Pursuant to the Act on the Republic No. 12079, also often called “VAT refund for non -resident tourists”, foreign guests who shop within the Philippines may apply for a VAT refund regarding eligible purchases.
To qualify, shopping ought to be made in accredited stores with a minimum transaction value of 3000 PHP. In addition, the purchased items have to be faraway from the country inside 60 days of purchase.
Qualifying products under this program include fashion products, accessories, electronics, jewelry, souvenirs and other consumer goods for private use.
Tourists in search of VAT refund must give their claims at designated international airports or seaports after leaving the Philippines. They are obliged to offer proof of purchase, a very important passport, a cool ticket and purchased products for verification.
The Philippines increases tourist expenses
The Filipino government goals to extend tourist expenditure by as much as 30% due to this policy, strengthening the country’s position as an important place of shopping in Southeast Asia.
Filipino financial secretary Ralph Recto emphasized that for each PHP 100 economic impact issued by tourists can almost double, which makes him a really favorable strategy for the local economy.
In addition, this policy goals to draw more international tourists who traditionally favored shopping places similar to Thailand and Singapore.
After introducing the motivation to return VAT, the Philippines hope to compete with other countries which have already implemented similar rules.
