VAT refund measure for non-resident tourists should provide seamless experience --Gatchalian

PHILIPPINES, June 19 - Press ReleaseJune 19, 2023

VAT refund measure for non-resident tourists should provide seamless experience --Gatchalian

Senator Win Gatchalian said the proposed value-added tax (VAT) refund measure for non-resident tourists should provide a seamless experience to ensure that its objective of attracting more tourists is realized.

"Customer experience is very important and what we want is a seamless experience when non-resident tourists claim the refund at the airport," Gatchalian said.

The VAT refund process should be in a digital form similar to those adopted by countries such as Singapore to make it easier for foreign tourists to claim the VAT refund. A provision in the proposed measure should be able to prevent possible abuse by some unscrupulous individuals who might want to take advantage of the program.

The measure should include a provision on the accreditation of retailers that would be recognized for the VAT refund. Such an accreditation process would deter those who may attempt to defraud the government through the VAT refund program, according to Gatchalian. He emphasized that such an accreditation process should make it easier for micro and small enterprises to be included in the VAT refund scheme.

"I really want to give special attention to local products. This can be a good opportunity to promote local products because there are plenty of mom-and-pop stores that we need to accommodate and help join in the bandwagon of this VAT refund scheme," he said.

The Senate Ways and Means Committee, which Gatchalian chairs, will also tackle the possibility of including overseas Filipino workers or Filipino expats based abroad in the VAT refund scheme.

The projected shopping revenue of about P9 billion can compensate for an estimated foregone revenue of P4 billion, Gatchalian pointed out, adding that the said tax reprieve is seen to contribute about P 12 billion to the country's gross domestic product (GDP).

According to Gatchalian, the proposed measure could likely be enacted into law within the year, as he noted that the Philippines is the only remaining country in ASEAN that is yet to adopt a VAT refund program for foreign tourists. The proposed measure is seen to enhance the country's competitiveness as a tourist destination in Asia and boost tourist arrivals to its pre-pandemic level of 8.2 million in 2019.

Gatchalian: Dapat walang aberya ang pagpapatupad ng VAT refund para sa non-resident tourists

Kasunod ng panukala ni Senador Win Gatchalian na value-added tax (VAT) refund para sa mga non-resident na turista, sinabi ng mambabatas na dapat maayos ang pagpapatupad nito at walang mga aberya upang maisakatuparan ang pag-akit ng mas maraming turistang pumunta sa Pilipinas.

"Napakahalaga ng customer experience at ang gusto natin ay isang maayos na pagpapatupad nito kapag ang mga turista ay nag-claim na ng kanilang refund sa airport," sabi ni Gatchalian.

Ang proseso ng refund ng VAT ay dapat nasa digital form na, tulad halimbawa sa Singapore, upang maging mas madali para sa non-resident tourists na mag-claim ang VAT refund. Sinabi ni Gatchalian na may probisyon sa naturang panukala na makaiwas sa anumang posibleng pang-aabuso ng ilang indibidwal na maaaring magsamantala sa programa.

Aniya, dapat isama sa panukala ang isang probisyon para sa accreditation ng mga retailer na kikilalanin para sa proseso ng VAT refund, lalo na ang micro at small enterprises o mga maliliit na negosyo. Ang pag-accredit sa kanila ay makakapigil sa mga maaaring magtangkang manlinlang sa gobyerno sa pamamagitan ng VAT refund program.

"Gusto ko talagang bigyan ng espesyal na atensyon ang mga lokal na produkto. Maaari itong maging isang magandang pagkakataon upang i-promote ang mga lokal na produkto lalo na't maraming mga maliliit na negosyo sa bansa na kailangan nating tulungan," sabi niya.

Pinag-aaralan din ng Senate Ways and Means Committee, na pinamumunuan ni Gatchalian, ang posibilidad na isama ang mga overseas Filipino worker o Filipino expats na nakabase sa ibang bansa sa VAT refund scheme.

Ipinunto ni Gatchalian na ang inaasahang mawawalang kita na P4 bilyon dahil sa VAT refund ay maaaring mabawi sa kikitain ng bansa mula sa shopping activities na tinatayang nasa P9 bilyon. Dagdag pa niya, ang nasabing tax reprieve ay nakikitang mag-aambag ng humigit-kumulang P 12 bilyon na gross domestic product (GDP).

Ayon kay Gatchalian, posibleng maisabatas ang panukala sa loob ng taon. Ang Pilipinas na lamang, aniya, ang natitirang bansa sa ASEAN na hindi pa nagpapatibay ng VAT refund program para sa non-resident tourists. Dahil sa panukalang VAT refund, nakikitang mapapaigting ang competitiveness ng bansa pagdating sa pagiging top tourist destination sa Asya at inaasahang maibabalik ang dami ng mga turista sa bansa sa pre-pandemic level na 8.2 milyon noong 2019.