DUAL CITIZENS will be allowed to avail of the value-added tax (VAT) refund for tourists if they enter the country using their foreign passport, according to draft implementing rules and regulations (IRR) released by the Department of Finance.
The IRR draft considers Filipinos with dual citizenship who use their foreign passport to enter the country as falling under the definition of “tourist.”
President Ferdinand R. Marcos, Jr. signed Republic Act No. 12079, also known as “Act Creating a VAT Refund Mechanism for Non-Resident Tourists,” in December. The law allows tourists to claim VAT refunds on purchases worth at least P3,000 from government-accredited stores.
The law, as approved, holds that “sales to citizens and residents of the Philippines, and foreign nationals residing in the country, are not eligible for VAT refund.”
The draft IRR deems “non-resident foreign passport holders who visit the Philippines” as tourists.
A public consultation on the IRR is scheduled for March 17.
The law follows the risk-based classification system for other VAT refund claims. It said claims deemed “high-risk” will require the presentation of the goods purchased for inspection and further validation by the Bureau of Customs. — Aubrey Rose A. Inosante