The Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPEIA) called for enactment of a law establishing a VAT refund system in the Philippines.
The goal is to attract more tourists and position the country as a regional shopping destination.
Special Assistant to the President Frederick Go emphasized the need for e-visas and VAT refund system for tourists.
“If we want to be a shopping capital, these are essential,” he said at the National Retail Conference and Expo (NRCE) 2024.
Philippine Retailers Association (PRA) president Roberto Claudio supported the initiative, calling it a “major breakthrough for retail.” He stressed the economic benefits of the VAT refund scheme and how it would incentivize tourists to stay longer, spend more, and explore more attractions.
The proposed VAT refund system would reimburse 60 percent to 90 percent of the VAT paid by tourists, similar to practices in other countries. It is seen as a crucial step in making the Philippines a shopping capital and driving economic growth.
The retailer group proposed that tourists be eligible for a VAT refund on goods purchased from accredited retailers in the Philippines, provided the total value of goods purchased within a single transaction is at least P3,000.
The goods should also be taken out of the country within 60 days from the date of purchase. The minimum purchase requirement aims to ensure that the VAT refund scheme benefits genuine tourists and encourages them to spend more on their shopping while in the Philippines.
