The only requirement is that the value of the product must not be less than P3,000.
Under Republic Act No. 12079, or the VAT Refund for Non-Resident Tourists, they may reclaim the taxes paid for items bought from accredited stores if the rules about this are followed.
President Ferdinand Marcos Jr. believes the new law will encourage tourists to buy Filipino products and promote the Philippines as a leading place to purchase quality local items.
"This initiative opens a new chapter in our tourism landscape, allowing the country to compete with other tourism markets that attract tourists who are eager to take home authentic, high-quality Filipino products," Marcos said.
Marcos directed the Department of Finance and the Bureau of Internal Revenue to create implementing rules and regulations to make the VAT refund process simple, fast and fair.
The estimated VAT refunds for tourists could reach P2.9 billion to P4.1 billion per year.
The revenue lost from these tax refunds will be offset by higher tourist spending in the country and an increase in visitor numbers, according to the government.
(Photos by Marou Sarne)
