DOF releases draft IRR for tourist VAT refunds

The Department of Finance released draft implementing rules and regulations for Republic Act 12079, which establishes a VAT Refund System (VRS) for non-resident tourists, including dual citizens who enter the country using their foreign passport.

Stakeholders are invited to provide feedback on the draft IRR during a public consultation scheduled for March 17 from 1 p.m. to 4 p.m. via Zoom.

Under the draft rules, non-resident tourists must purchase goods worth at least PHP3,000 in accredited stores and take them out of the country within 60 days to be eligible for a VAT refund.

The Department of Tourism will lead efforts to promote the VRS to tourists while other government agencies like DTI, DOT, DICT, and NEDA have specific roles outlined in the draft IRR.

Accredited stores must verify tourist eligibility, input transaction details into the VRS system, and issue a VAT refund-eligible invoice before allowing purchases to qualify for refunds.