Asia's leading beach country now VAT-free for foreign tourists

According to the Department of Finance, non-resident tourists or foreign passport holders can apply for a VAT refund on locally purchased goods from accredited stores, provided the total purchase amounts to at least PHP3,000 (US$52), as reported by Philstar.

To qualify, the goods must be taken out of the Philippines as accompanied baggage within 60 days from the date of purchase.

The VAT refund is available for retail and tangible goods such as clothing, apparel, electronics, gadgets, jewelry, accessories, souvenirs, food or non-food consumables, and other items intended for personal use.

The Philippines welcomed over 5.4 million foreign visitors in 2024, an 8.7% increase compared to the previous year, but short of its target of 7.7 million arrivals.

The country generated a record PHP760.5 billion ($13 billion) in tourism revenue in 2024, marking a 9% increase from the previous year and surpassing pre-Covid levels.