Philippines: Asia’s Leading Beach Destination
The Philippines, recognized as “Asia’s Leading Beach Destination” at the 2024 World Travel Awards, is making significant moves to enhance its appeal to foreign tourists. In a bid to stimulate shopping and spending, the country has announced a value-added tax (VAT) exemption for international visitors. This initiative is aimed at enriching the overall tourist experience while encouraging increased financial engagement within the local economy.
Understanding the VAT Refund Process
According to the Department of Finance, non-resident tourists or holders of foreign passports can apply for a VAT refund on locally purchased items from accredited stores. To qualify for this VAT refund, the total amount spent must reach at least PHP 3,000 (approximately USD 52). Additionally, the goods need to be taken out of the Philippines as accompanied baggage within 60 days from the date of purchase.
Eligible Goods for VAT Refund
The VAT refund is applicable for an array of retail items, including clothing, electronics, jewelry, accessories, souvenirs, and consumables intended for personal use. This broad eligibility encourages tourists to explore the country’s vibrant shopping scenes without the additional burden of taxation. In 2024, the Philippines welcomed over 5.4 million foreign visitors, marking an 8.7% increase from the previous year despite falling short of its target of 7.7 million arrivals.
