The Supreme Court has unanimously declared Republic Act 12709, or the VAT Refund for Non-Resident Tourists Act, constitutional, affirming that the measure supports the government’s legitimate goal of boosting tourism and enhancing the country’s global competitiveness.
The ruling dismissed a petition claiming the law violated the equal protection clause, with the high court stating that granting VAT refunds exclusively to foreign tourists does not discriminate against Filipino citizens.
The law allows eligible foreign tourists to claim VAT refunds on purchases of at least P3,000 made within 60 days before leaving the Philippines.
The Court also noted that many neighboring Asian countries and European nations have long implemented similar VAT refund schemes to attract more visitors.
Several justices added that the policy is an investment expected to stimulate tourism, expand economic activity, and increase long-term tax revenues.
Source: PhilNews24 | July 7, 2026
