RMC No. 29-2025: Circularizing the RA No. 12079, titled (An Act Creating a VAT Refund Mechanism for Non-Resident Tourists, Adding a New Section 112-A to the National Internal Revenue Code of 1997, as Amended, for the Purpose)

Key points

1. Eligibility. A tourist is eligible for a VAT refund on locally purchased goods if the goods are bought in person in duly accredited stores and are taken out of the Philippines within sixty (60) days from purchase. The value per transaction must be at least Three thousand pesos (₱3,000.00).
2. Threshold review. The threshold is reviewed and adjusted every three (3) years by the Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, taking into consideration the CPI published by the Philippine Statistics Authority.
3. Refund system. The Department of Finance engages one or more reputable, globally recognized VAT refund operators for end-to-end solutions. The refund may be made electronically or in cash.
4. Funding and definition. The amount needed is charged against the special account in the General Fund under Section 106. A tourist means a non-resident foreign passport holder.

Who is affected

• Non-resident foreign passport holders buying goods in accredited stores
• Accredited stores

Deadlines and effectivity

• Goods taken out within sixty (60) days from purchase
• Threshold review every three (3) years
• Issued April 7, 2025