The Value-Added Tax (VAT) Refund for Non-Resident Tourists Law is expected to enhance the Philippines’ appeal as a shopping destination and stimulate economic growth by encouraging higher tourist spending, Department of Tourism (DOT) Secretary Christina Garcia Frasco said on Monday.

Frasco made the statement following the ceremonial signing of the Implementing Rules and Regulations (IRR) for Republic Act No. 12079 at the Department of Finance (DOF) in Manila.

Signed into law by President Ferdinand Marcos Jr. in December 2024, the measure establishes a VAT refund systemallowing non-resident tourists to reclaim VAT on local purchases worth at least PHP3,000. To qualify, the goods must be taken out of the country within 60 days of purchase.

“The signing of the VAT refund law by our President and the subsequent signing of the IRR come at an opportune time for our country, where tourism spending is at an all-time high,” Frasco said.

According to the World Travel and Tourism Council (WTTC), tourists visiting the Philippines have the highest per capita spending in ASEAN, averaging USD2,073 per visitor.

“We foresee that with the implementation of this VAT refund act, we would be able to ensure more benefits for our local tourism stakeholders, particularly in shopping tourism,” Frasco added.

She also noted that the law would have a positive impact on accommodations, transport, and other tourism-related sectors, further driving economic activity.

The ceremonial signing was led by DOF Secretary Ralph Recto, Bureau of Customs Commissioner Bienvenido Rubio, and Bureau of Internal Revenue Deputy Commissioner Marissa Cabreros.