As summer approaches and the Philippines remains a top tourist destination, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular 09-2025 to highlight Republic Act 12079, which establishes a value-added tax (VAT) refund mechanism for non-resident tourists.
To qualify, goods must be personally purchased by non-resident tourists from accredited local stores and taken out of the Philippines within 60 days from date of purchase. Each transaction must be worth at least P3,000. This threshold is reviewed and adjusted every three years based on the Consumer Price Index, as recommended by the Commissioner of Internal Revenue.
Non-resident tourists can claim VAT refunds electronically or in cash. To ensure effective implementation, the Department of Finance must engage reputable, globally recognized, and experienced VAT refund operators.
RA 12079 takes effect on Dec. 24, 2024, 15 days after its publication in the Official Gazette on Dec. 9, 2024, and was circularized by the BIR on April 7, 2025.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants