RMC No. 53-2025: Circularizing the implementing rules and regulations of Republic Act No. 12079, entitled “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 of tourists. Goods must be bought in person from duly accredited stores and taken out of the Philippines as accompanied baggage within sixty (60) days from purchase. Each transaction must be at least ₱3,000.00 under a single invoice, adjusted by the cumulative inflation of the past three (3) years as published by the PSA.
2. Who and what is excluded. Dual citizens qualify only if they use their foreign passport to enter and exit and fall within the definition of tourist. Sales to Philippine citizens and residents and to foreign nationals residing in the country are not eligible, and only retail tangible goods for personal use qualify. Goods in commercial quantity, goods consumed in the Philippines, goods from e-marketplaces or online stores, and services are not qualified.
3. Claim process. The tourist presents a valid foreign passport and eTravel registration to the accredited store before buying. The store verifies them and inputs the details in the VAT Refund System (VRS). At the airport or seaport the tourist presents the passport to the VRS operator, and goods needing inspection go to the Customs Inspection counter.
4. Payment and fees. The VRS operator pays the approved refund in Philippine currency, in cash or electronically, directly to the tourist’s own digital wallet, bank or credit card account. The tourist bears a service fee, with a maximum set by the DOF, and any transaction fees of the payment channel.
5. Risk-based inspection and accreditation. Claims are classed as low-risk or high-risk. High-risk claims require presenting the goods for BOC inspection, and low-risk claims face random inspection. VAT-registered retail establishments are accredited by the VRS operator on submitting the BIR Certificate of Registration and DTI or SEC registration, among other requirements.
6. Reimbursement and funding. The VRS operator applies to the BIR for reimbursement of refunded VAT. The BIR processes it within thirty (30) days from complete submission of documents, subject to disallowance for discrepancies. The amount is charged against the special account in the General Fund under Section 106 of the NIRC and is subject to COA post-audit.

Who is affected

• Non-resident tourists
• Duly accredited stores
• VRS operators

Deadlines and effectivity

• Goods taken out of the Philippines within sixty (60) days from purchase
• Reimbursement processed within thirty (30) days from complete documents