Author MRTC

Introduction

REVENUE MEMORANDUM CIRCULAR (RMC) NO. 029-2025

This RMC introduces an amendment to the National Internal Revenue Code (NIRC) by adding a new provision, designated as Section 112-A. This amendment is in accordance with Republic Act No. 12079, which establishes a VAT refund mechanism specifically for non-resident tourists.

Salient points of Section 112-A:

  1. Tourists, as defined in this Act, shall mean, a non-resident foreign passport holder. They are eligible for a VAT refund on locally purchased goods provided the following requisites are present:
    a. Goods purchased in person from duly accredited stores;
    b. Such goods shall be taken out of the Philippines within sixty (60) days from the date of purchase; and
    c. The value of goods purchased per transaction shall be equivalent to at least Three Thousand Pesos (₱3,000.00). Such threshold shall be subject to review and adjustment every three (3) years by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, taking into consideration the Consumer Price Index (CPI) as published by the Philippine Statistics Authority (PSA)
  2. The Department of Finance will hire one or more reputable and experienced VAT refund operators to implement and manage a VAT refund system for tourists.
  3. Refunds may be issued electronically or in cash, as may be specified by the implementing rules and regulations.
  4. Funds needed for implementing the VAT refund system for tourists will be taken from the special account in the General Fund, as stated in Section 106 of this Code.