REVENUE MEMORANDUM CIRCULAR (RMC) NO. 053-2025
This RMC informs all internal revenue officials, employees, and concerned parties of the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 12079, which introduces the Value-Added Tax (VAT) refund mechanism for non-resident tourists through the addition of Section 112-A to the National Internal Revenue Code of 1997, as amended. Under said IRR:
Section 4 – Requisites for Availment. – A tourist who shall be eligible to avail the VAT refund on goods purchased in the Philippines. To qualify, the following conditions must be met:
- Goods must be bought in person by the tourist from accredited stores.
- The goods must be taken out of the country by the tourist within 60 days from the date of purchase, as part of their accompanied baggage.
- Each transaction must be worth at least ₱3,000, supported by a single invoice. This threshold may be adjusted based on inflation data from the PSA (Philippine Statistics Authority).
Filipinos with dual citizenship can also claim VAT refunds if they use a foreign passport when entering and exiting the Philippines and meet the tourist definition.
Exclusions: VAT refunds are not available on sales to Philippines citizens, foreign nationals residing in the Philippines, diplomats, consular officers, expatriates, and those already VAT-exempt.
Section 5. Eligible Goods – outlines the types of purchases that may qualify for a VAT refund. Only retail, tangible goods meant for personal use—such as clothing, electronics, jewelry, souvenirs, and consumables—are eligible.
However, the following are excluded from VAT refunds:
- Goods in commercial quantities
- Items consumed in the Philippines
- Purchases from online or e-marketplaces
- Services like transport, lodging, or hospitality.
For general guidelines on the VAT refund process and requirements for the accreditation of a store, please see the IRR attached as Annex A of RMC 053-2025.