The Department of Finance (DOF) released the draft implementing rules and regulations (IRR) for Republic Act 12079 or the Value-Added Tax (VAT) Refund for Non-Resident Tourists.
In a social media post late Tuesday, the DOF urged stakeholders to join a public consultation on the draft IRR.
The IRR prescribes the guidelines and standards for implementing a VAT Refund System (VRS) in the Philippines.
It also outlines the roles of the implementing agencies, VRS operators, and duly accredited stores in implementing the VRS.
The draft IRR states that a tourist shall be eligible to refund the VAT paid on locally purchased goods if the goods are purchased by the tourist in person from duly accredited stores and the goods are physically taken out of the Philippines by the tourist as accompanied baggage, within 60 days from the date of purchase.
Another requisite is if the value of the goods purchased per single transaction is at least PHP3,000 covered by a single invoice duly registered with the Bureau of Internal Revenue (BIR) provided that the amount shall be adjusted using the cumulative inflation for the past three years as published by the Philippine Statistics Authority.
Under the draft IRR, Filipinos with dual citizenship shall be eligible for a VAT refund if they use their foreign passport when entering the Philippines.
The VAT refund shall only apply to retail and tangible goods, such as clothing, apparel, electronics, gadgets, jewelry, accessories, souvenirs, food or non-food consumables, and other goods intended for personal use.
The draft IRR states that tourists intending to avail of the VAT refund shall present their valid passport and e-travel system-issued QR code to the duly accredited store before purchasing eligible goods.
The accredited store shall verify the identity and eligibility of the tourist for a VAT refund, input the tourist’s passport and purchase transaction details in the VRS, and issue a corresponding invoice with an indicator that the transaction is qualified for a VAT refund.
The draft IRR also states that VAT-registered establishments intending to participate in the VRS shall undergo accreditation with the VRS operator.
Under the draft IRR, the Department of Finance shall engage the services of one or more reputable and internationally recognized VRS operators while the Department of Tourism shall lead the dissemination of external communications to promote the VRS to tourists.
The Department of Trade and Industry, meanwhile, shall encourage and promote the participation and accreditation of retail establishments in the VRS while the Department of Transportation shall facilitate the planning and installation of VAT refund counters or kiosks.
The Department of Information and Communications Technology shall facilitate the integration of the issuance of a digital identifier for tourists qualified for VAT refund while the National Economic and Development Authority shall every three years, conduct studies to determine and monitor the impact of the VRS.
The BIR, meanwhile, shall issue detailed rules and regulations outlining the requirements to be submitted by the VRS operator.
The DOF said a public consultation on the draft IRR will be held on March 17 from 1 p.m. to 4 p.m. via Zoom.
Interested participants may register via https://bir-gov-ph.zoom.us/meeting/register/j5Rtidr5S4y1qStWCBSDHw. (PNA)
