REVENUE MEMORANDUM CIRCULAR (RMC) NO. 044-2026
RMC No. 44-2026, issued on May 13, 2026, circularizes Department of Finance (DOF) Department Order No. 018-2025, which sets forth the guidelines for the accreditation of VAT Refund System (VRS) operators pursuant to Republic Act No. 12079, otherwise known as the VAT Refund for Non-Resident Tourists Act.
The Circular was issued to inform and guide Bureau of Internal Revenue (BIR) officials, employees and other concerned stakeholders regarding the implementation of the accreditation framework for entities that will operate the VAT refund system for eligible non-resident tourists. By disseminating the DOF guidelines, the BIR aims to support the effective implementation of the VAT refund mechanism established under the law and ensure that all concerned personnel are aware of the governing rules and procedures.
Through this system, eligible foreign tourists may claim refunds for VAT paid on qualified purchases, making the Philippines a more attractive shopping destination.
Department Order No. 018-2025: Guidelines for the Accreditation of VAT Refund System Operators
KEY DEFINITIONS
| Term | Meaning |
| Tourist | A non-resident foreign passport holder visiting the Philippines. |
| VAT Refund System (VRS) | A fully digital system enabling eligible tourists to claim VAT refunds. |
| VRS Operator | A third-party entity accredited to design, build, and operate the VRS. |
| Service Level Agreement (SLA) | An agreement between the DOF and the operator specifying service standards and performance requirements. |
MAJOR RESPONSIBILITIES OF VRS OPERATORS
| Particulars | Remarks |
| System Development and Operations | ● Design and maintain a fully digital end-to-end VAT refund platform. ● Provide digital solutions for participating stores and tourists. ● Manage refund processing and payment systems. ● Maintain hosting infrastructure and perform system upgrades. |
| Tourist Services | ● Facilitate VAT refund claims. ● Provide information, support, and digital tools to tourists. ● Promote awareness and usage of the VAT refund system. |
| Particulars | Remarks |
| Store Support | ● Accredit participating stores. ● Provide training, reporting, and promotional support. |
| Government Coordination | ● Coordinate with DOF, BIR, Bureau of Customs (BOC), and Department of Tourism (DOT). ● Provide access to transaction and refund information ● Supply technical support and validation systems. |
| Compliance and Security | ● Ensure cybersecurity and information security. ● Comply with the Data Privacy Act. ● Maintain business continuity plans. ● Designate a Data Protection Officer. |
The Order adopts a “Traveller-Pay Model”, wherein:
- The operating cost of the VAT refund system is charged as a service fee.
- The fee is deducted from the tourist’s VAT refund amount.
PRE-QUALIFICATION
Applicants must demonstrate extensive global experience and credibility as required by Section 112-A of R.A No. 8424, as amended by R.A No. 12079.
| Requirements | Standard |
| Geographic Presence | Operates VAT refund services in at least 20 countries/economies/regions |
| Experience | Minimum of 5 years in VAT refund operations |
| Regional Coverage | Experience in at least 2 global geographic regions |
| Reputation | No blacklisting or license revocation |
| Certifications | ISO/IEC 27001 and equivalent service management certifications |
PRE-QUALIFICATION PROCEDURES
The following pre-qualification procedure shall be undertaken by the DOF, through the Accreditation Committee:
- Publish an Invitation to Apply for Accreditation. The invitation must appear:
- In a newspaper of general circulation
- On the official DOF website, which must run for two (2) consecutive weeks
- Applicants must submit a Letter of Intent and complete documents stated in the Invitation
- Documents must be properly authenticated (signed, certified, notarized and/ or apostilled).
- Submission must be in person only; no courier or online submission will be accepted.
- Applications must be complete and on time, or they will be rejected.
- The committee will review within 7 working days and notify the applicant if they qualify or not.
PRE-QUALIFICATION REQUIREMENTS
a. Letter of Intent stating the following:
i. Intention to participate in the VRS operator accreditation; and
ii. For unincorporated entities, intention to establish a corporation or joint venture and register it under Philippine laws.
b. Individual Attestations from competent authorities in countries, economies, or administrative regions where the applicant currently provides VAT refund services.
c. Sworn Statement indicating:
i. Number and list of countries, economies, and administrative regions where VAT refund services are operated;
ii. Number and list of geographic regions with existing contracts for digital end-to-end VAT refund systems; and
iii. Years of experience operating VAT refund services;
d. Duly Attested Contract Matrix covering completed, ongoing, and cancelled digital end-to-end VRS service contracts under a traveller-pay model, including:
i. country, economy, and administrative region;
ii. company operating (parent or subsidiary of parent);
iii. description of VRS being implemented;
iv. inclusive period;
v. status of service contract;
vi. refunds granted, pending, and denied in absolute numbers and percentages; and
vii. remarks;
e. Sworn Statement certifying that the applicant, its parent company, subsidiaries, or joint venture partners are not included in the GPPB Consolidated Blacklisting Report.
f. Sworn Statement certifying that the applicant, its parent company, subsidiaries, or joint venture partners have not had licenses or contracts revoked by any foreign jurisdiction.
g. Certified Copies of ISO/IEC 27001:2013 and ISO/IEC 9001:2015 certifications, or equivalent internationally recognized certifications for information security and service management systems.
h. Certified True Copies of the Audited Annual Financial Statements for the last three (3) taxable years of the applicant or its parent company;
i. Written Declaration of any actual or potential conflict of interest, or any risk that may affect service delivery during the contract term; and
j. Certification Under Oath confirming that all submitted documents are authentic originals or true copies, complete, and that all information and statements provided are accurate and truthful.
ACCREDITATION PROCESS
After pre-qualification, applicants undergo a more detailed evaluation.
- Release of Terms of Reference (ToR)
- Technical, operational, and financial requirements are provided.
- Submission of Non-Disclosure Agreement (
- Applicants sign a NDA
- Submission of Technical and Financial Proposals
- Based on the ToR requirements.
- System Testing
- Quality assurance and compliance testing.
- Assessment of functionality, integrity, and user-friendliness.
- Evaluation and Ranking
- Conducted by the Accreditation Committee.
- Recommendation to the Secretary of Finance
- Committee endorses qualified applicants.
- Issuance of Notice of Accreditation
- Approved operators receive accreditation.
- Signing of SLA
- Formal service standards are established.
- Notice to Commence/Implement
- Operators may only begin operations after receiving authorization from the DOF.
ACCREDITATION REQUIREMENTS
- Class A – Legal Documents
- Secretary’
;s Certificate or equivalent attesting the intent to apply for accreditation and stating the VRS operator’s authorized signatories and representatives; - Certified true copies of the SEC Certificate of Registration, Articles of Incorporation and By-Laws, updated General Information Sheet (GIS), and BIR Certificate of Registration
- Notarized NDA
- Certifications under oath of the authenticity of the mentioned documents.
- Class A – Technical Documents
- Technical proposal
- Compliance with ToR specifications
- Class A – Financial Documents
- Treasurer’s certification on paid-up capital of the Corporation
- Class B – Additional Corporate Documents
- Company profile with names and designations of the company’s Board of Directors or partners;
- Statement of the company’s principals and key staff with their qualifications, technical competence, experience and other related expertise;
- Certified true copy of the valid joint venture or consortium agreement, in case of a joint venture or consortium, if applicable;
- Letter authorizing the Accreditation Committee or its duly authorized representative/s to verify any or all of the documents submitted for eligibility check; and
- Written declaration of any conflict of interest on the part of applicant.
- Accreditation Fee
- Payment of ₱500,000, the fee which may be adjusted by the Accreditation Committee with the approval of the Secretary of Finance.
TREATMENT OF JOINT VENTURES AND CONSORTIUMS
- Applications may be submitted by single entities, joint ventures, or consortiums. For joint ventures and consortiums, member companies may collectively meet the prequalification and eligibility requirements. However, each member company is still required to individually submit all required Class A (Legal) documents.
Additionally, a company that is part of one joint venture or consortium cannot participate in another application for accreditation, nor can it apply separately on its own.
CONDITIONS FOR ISSUANCE OF NOTICE TO COMMENCE/IMPLEMENT
- Must sign an agreement (SLA) with the DOF
- Must post a ₱5 million performance bond as security for compliance
VALIDITY PERIOD/RENEWAL OF ACCREDITATION
- Accreditation is valid for 5 years
- May be renewed for a period not exceeding five (5) years
- Renewal application must be filed at least three (3) months before expiration
If the Secretary of Finance does not act on a renewal application, the accreditation is automatically extended on a day-to-day basis until a final decision is made.
GROUNDS FOR SUSPENSION, REVOCATION, AND/OR TERMINATION[RV1] [GG2] OF ACCREDITATION
A VRS operator’s accreditation may be suspended, revoked, or terminated for the following reasons:
- Breach of agreement
- Violating the terms of the SLA or NDA
- Poor performance or misconduct
- Gross negligence, poor performance, or intentional wrongdoing
- Violation of laws
- Breaching tax laws, customs laws, or other applicable regulations
APPEALS AND NON-RENEWAL FOR ACCREDITATION
- Appeals against suspension, revocation, or termination of accreditation may be filed within 15 working days with the Office of the President from the receipt of order.
- Renewal of accreditation is not allowed unless the sanction has been lifted by the Secretary of Finance, upon recommendation of the Accreditation Committee.
FEES
- Approved VRS operators may charge service fees only as a percentage of the VAT refunded to each non-resident tourist, subject to proper authorization.
PERFORMANCE REVIEW
- The Secretary of Finance, through the Accreditation Committee, conducts an annual review of VRS operators to assess their compliance with legal and regulatory requirements, and may suspend, revoke, or terminate accreditation in cases of poor performance, negligence, or misconduct.
ACCESS TO INFORMATION
- The Accreditation Committee has full access to all relevant information for monitoring and oversight.
- The BIR must be given access to all data, systems, and records related to VAT refunds. This includes:
- Transaction data
- Refund claims and documents
- Status reports of refunds
- Any additional information needed for audit or verification
SUBMISSION OF MONTHLY REPORT
- The VRS operator/s shall submit, through the Accreditation Committee, all required reports in accordance with the guidelines and formats prescribed by the Secretary of Finance.