NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Second Regular Session 
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23 AUG 17 PI :01
SENATE
s. no.2415
ii' Li 6r
(In substitution of Senate Bill Nos. 2023 and 2148, taking into consideration
House Bill No. 7292)
Prepared by the Committee on Ways and Means with Senators Gatchalian, Estrada,
and Villanueva as authors
AN ACT
CREATING A VAT REFUND MECHANISM FOR NON-RESIDENT TOURISTS, 
ADDING A NEW SECTION 112-A TO THE NATIONAL INTERNAL REVENUE 
CODE OF 1997, AS AMENDED, FOR THE PURPOSE
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. A new section designated as Section 112-A under Chapter I, Title
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IV of the National Internal Revenue Code, as amended, is hereby inserted to read as
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follows:
"SEC. 112-A. VAT REFUND FOR TOURISTS. - 
(A) A TOURIST SHALL BE ELIGIBLE FOR A VALUE-ADDED 
TAX (VAT) REFUND ON LOCALLY PURCHASED GOODS IF THE 
FOLLOWING REQUISITES ARE PRESENT:
(1) THE GOODS ARE PURCHASED IN PERSON BY THE 
TOURIST IN DULY ACCREDITED STORES;


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(2) SUCH GOODS ARE TAKEN OUT ALONG WITH THE 
TOURIST WITHIN SIXTY (60) DAYS FROM THE DATE OF 
PURCHASE; AND
(3) THE VALUE OF GOODS PURCHASED PER TRANSACTION 
IS EQUIVALENT TO AT LEAST THREE THOUSAND PESOS 
(PHP3a000.00): PROVIDED, THAT SUCH THRESHOLD 
MAY BE ADJUSTED 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).
(B) 
THE DEPARTMENT OF FINANCE SHALL ENGAGE THE 
SERVICES OF ONE OR MORE REPUTABLE AND 
INTERNATIONALLY RECOGNIZED VAT REFUND OPERATORS 
THAT SHALL PROVIDE END-TO-END SOLUTIONS TO THE 
GOVERNMENT FOR THE ESTABLISHMENT AND OPERATION OF A 
VAT REFUND SYSTEM FOR TOURISTS.
(C) THE REFUND UNDER THIS ACT MAY BE MADE EITHER 
ELECTRONICALLY OR IN CASH.
(D) 
THE AMOUNT NECESSARY FOR THE VAT REFUND 
SYSTEM FOR TOURISTS UNDER THIS ACT SHALL BE CHARGED 
AGAINST THE SPECIAL ACCOUNT IN THE GENERAL FUND AS 
PROVIDED UNDER SECTION 106 OF THIS CODE.


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FOR PURPOSES OF THIS SECTION, THE TERM 'TOURIST'
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MEANS A FOREIGN PASSPORT HOLDER WHO IS A NON-
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RESIDENT ALIEN INDIVIDUAL.
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SEC. 2. Implementing Rules and Regulations. - Within ninety (90)
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calendar days from the effectivity of this Act, the Secretary of Finance shall, after due
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consultation with the Department of Trade and Industry, Department of
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Transportation, Department of Tourism, National Economic and Development
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Authority, Bureau of Internal Revenue, and Bureau of Customs, promulgate the
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necessary rules and regulations to faithfully implement the Intent and provisions of
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this Act.
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SEC. 3. Separability Clause. - If any provision of this Act is declared
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unconstitutional, the remaining parts or provisions not affected thereby shall remain
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In full force and effect.
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SEC. 4. Repealing Clause. - All laws, decrees, executive orders, implementing
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rules and regulations, issuances, or any part thereof inconsistent with the provisions
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of this Act are deemed repealed, amended, or modified accordingly.
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SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days following its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,