Traveling to the Philippines is more than just exploring its famous tourist spots, vibrant culture, and delicious cuisine, but also a chance to enjoy some financial perks!

The country offers a VAT refund program for foreign tourists on goods purchased from accredited retailers. With the right knowledge and preparation, you can maximize your shopping experience by taking advantage of this refund scheme.

What is the VAT Refund Program for Foreign Tourists in the Philippines?

The value-added tax (VAT) refund program aims to boost tourism and the country’s economy by allowing foreign tourists to claim refunds on VAT paid for certain purchases made during their stay. 

Under Republic Act No. 12079, non-resident tourists can claim 12% VAT refund on eligible purchases made at accredited stores in the country, given that they have spent at least Php 3,000.00 per transaction.

Eligible for a VAT Refund in the Philippines

You are eligible to receive a VAT refund, if the following conditions are met, based on Section 4 of Republic Act No. 12079:

  • The goods are purchased in person by the tourist from duly accredited stores

  • The goods are physically taken out of the Philippines by the tourist as accompanied baggage, within sixty (60) days from the date of purchase

  • The value of the goods purchased per single transaction is equivalent to at least Php 3,000.00 covered by a single invoice

Additionally, Filipinos with dual citizenship are also eligible for a VAT refund if they use their foreign passport in entering and leaving the Philippines. While foreign nationals residing in the country are not eligible for VAT refund since it is only available to individuals holding a Temporary Resident Visa or Tourist Visa (9A). 

Eligible Goods for a VAT Refund in the Philippines

The VAT refund only applies to retail and tangible goods, such as clothing, apparel, electronics, gadgets, jewelries, accessories, souvenirs, food or non-food consumables, and other goods intended for personal use.

Please note that the following are not qualified for the VAT refund:

  • Goods in commercial quantity

  • Goods to be consumed fully or partially in the Philippines

  • Goods purchased from e-marketplaces and other digital or online stores

  • Services, such as transportation, accommodation, or other hospitality services

How to Claim VAT Refund as a Foreign Tourist in the Philippines

To claim your VAT refund in the Philippines, you may follow this procedure to be guided:


  • Presentation of Documents. You must present your valid foreign passport and eTravel registration to the duly accredited store prior to the purchase of eligible goods.

  • Verification of Identity and Eligibility. The duly accredited store verifies your identity and eligibility for VAT refund for checking your foreign passport and eTravel registration presented. A photocopy or an image of your passport may also be presented, subject to presentation of the original to the VAT Refund System (VRS) operator upon validation of the refund claim.

  • Compliance to VRS and Tax Code. The duly accredited store inputs your foreign passport and purchase transaction details in the VRS. They must also comply with the provisions of Tax Code and applicable rules and regulations. 

  • Presentation of Foreign Passport. You are required to present your foreign passport to the VRS operator at the airport or seaport.

  • Inspection and Validation. If physical inspection of the goods is required, you must proceed to the Customs Inspection counter for further inspection and validation before their refund claim can be processed.

  • Payment of Fees. After the successful validation of the claim for VAT refund, the same must be approved and paid by the VRS operator in the Philippine currency in cash, digital wallets, bank transfers, or credit cards.

  • Service Fee and Transaction Fee. A service fee will be charged to you, which should be set by the Department of Finance (DOF), for the processing of the refund. Transaction fees imposed by digital wallets, banks, or electronic payment of the refund amount must also be borne by you. 

Deadline of VAT Refund in the Philippines

Refunds must be processed before your departure at designated refund counters. 


The VAT refund process may be made electronically or in cash through the services of an in reputable, globally recognized, and experienced VAT refund operator engaged by the Department of Finance (DOF) to provide end-to-end solutions for the establishment and operation of a VAT Refund System for tourists. 

List of Accredited Stores for VAT Refund in the Philippines

You may check the latest VAT refund Revenue Memorandum Circular (RMC) updates from the Bureau of Internal Revenue (BIR)  or  accredited retailers for specific store lists. They also provide refund guidelines. 

Can Tourists Get a VAT Refund on Imported Goods?

Yes, you can get a VAT refund on imported goods as long as you meet the export requirements of leaving the country with your purchases within sixty (60) days. 

Need further information and assistance regarding the VAT Refund for Tourists in the Philippines? Talk to our team at Duran & Duran-Schulze Law in BGC, Metro Manila, Philippines to know more about the requirements and process. Call us today at (+632) 8478 5826 or +63 917 194 0482, or send an email to info@duranschulze.com for more information.