Section 1Sec./Art. 1

A new section designated as Section 112-A under Chapter I, Title IV of the National Internal Revenue Code, as amended, is hereby inserted to read as follows:

"Section 112-A. VAT Refund for Tourists. -

(a) A tourist shall be eligible for a 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;

(2) Such goods are taken out of the Philippines by 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 (P3,000.00): Provided, That such threshold shall be subject to review and adjustment every three (3) years 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 (1) or more reputable, globally recognized, and experienced VAT refund operators to 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 section may be made either electronically or in cash.

(d) The amount necessary for the VAT refund system for tourists under this Code shall be charged against the special account in the General Fund as provided under Section 106 of this Code.

For purposes of this section, the term 'tourist' means a non-resident foreign passport holder."