Tourist VAT Refund

[Kingpin]

1 hour ago, Dave Hounddriver said:

Marcos has approved a value-added tax refund program for foreign tourists..."

It's not yet known how or even if airport departures determines "foreign tourist", especially if this is the only requirement:

4 hours ago, OnMyWay said:

You have to show your passport.

 

 

[Old55]

As Tom and Don suggest it's very unlikely a Filipino citizen would be allowed a Philippines VAT exemption.

However anything is possible considering Philippines bureaucratic twilight zones. 

[OnMyWay]

17 hours ago, Kingpin said:

But it's not just tourists, there is a possible advantage for residents too.

5 hours ago, Dave Hounddriver said:

I am sure he knows that.  Its in the link he mentioned in January.  Sure he read where it says: "...Marcos has approved a value-added tax refund program for foreign tourists..."
 

He brought up residents, so I assumed that he meant foreigner permanent residents like 13a, SRRV, etc.  You also mentioned residents.

17 hours ago, Dave Hounddriver said:

Perhaps I am being a little thick here, but are you saying that the possible advantage for residents is you might buy that diamond ring if you get the VAT refunded but you would not buy it if the VAT was added?

 

[Kingpin]

5 hours ago, Old55 said:

anything is possible

Until details are released that's where we're at now.

Even a 'tourist' could purchase an item, fly out and fly back quickly, never paying any tax.

[softail]

Seems like the only way this would work would be at point of purchase, not be charged the vat when the item is purchased. I can’t imagine them refunding someone cash at the airport as the person is getting ready to leave the country on the plane. Perhaps the person could buy a few beers with the money while they wait for the plane.🤔

[Freebie]

Vietnam, you have to take your receipts to an office in airport  , and they give you the refund in cash.. I recall its probably in dollars. Was efficient.

Japan, the places that offer tax free take away the tax at tome of purchase on showing passport.

 

[hk blues]

IIRC in Thailand you need to request a VAT refund receipt in the store (not the usual receipt) and then use this at the airport to reclaim the VAT refund which is paid in Thai Baht.  It's only available for purchases above a certain limit.  Of course, only available for tourists.  I'm not sure how they distinguish between Thai national tourists and Thai national residents - I assume it's linked to immigration records.  

[Joey G]

On 5/3/2023 at 1:06 AM, Kingpin said:

Say you purchase a diamond ring for 500,000 php, including 60,000 VAT.

Am I the only one NOT buying diamond rings IN THE Philippines over $500????????????????? It's not South Africa 

[Mike J]

8 minutes ago, Joey G said:

Am I the only one NOT buying diamond rings IN THE Philippines over $500????????????????? It's not South Africa 

The wife and I both wear simple gold bands.   No plans to buy any diamonds in the future here or anywhere else.  I can use the money for something important like beer.  

[JJReyes]

20 hours ago, softail said:

Seems like the only way this would work would be at point of purchase, not be charged the vat when the item is purchased. I can’t imagine them refunding someone cash at the airport as the person is getting ready to leave the country on the plane. Perhaps the person could buy a few beers with the money while they wait for the plane.🤔

This is the most pragmatic procedure which means it is unlikely to happen.  Instead, the rebate will more likely be in pesos.  During my last departure, Philippine Airlines gave us a refund.  It was quoted in US dollar in their email, but the payment at the airport was made in pesos.  Being over the Bangko Sentral P50,000 limit on currency export, I scrambled to get the money converted to dollars at a money exchange booth paying about 7% commission.