Filipino shoppers share their tax refund strategies.
Filipino travelers have become experts at navigating the global tax refund maze. Whether it’s a Chanel in Paris, sneakers in Tokyo, or a Bottega in Milan, they do the math, comparing not just sticker prices, but refund rates, tax systems, and currency too.
“I once took a day trip to Singapore just for a bag,” Lynn says. She had spotted a Moynat tote in Paris, didn’t buy it, and instantly regretted the decision. Back in Manila that same weekend, she booked a quick flight to Singapore, where the same bag was in stock and cheaper, thanks to Singapore’s efficient tax refund system.
Related story: PH is now VAT-free for foreign tourists
Related story: Japan eyes travel tax hike in latest move against overtourism
The numbers game
Let’s say you’re buying a luxury item worth ₱150,000. Based on current VAT and sales tax policies, plus the latest exchange rates as of April 2025, here’s a sample estimate of how much you’d actually pay for the same item across different cities:
| City | Tax type | Rate | Refund Estimate (after fees) | Final Cost in PHP |
| Paris | VAT Refund | 20% | ₱22,500–₱25,000 | ₱125,000–₱127,500 |
| Tokyo | Tax-Free (for now) | 10% | ₱15,000 (instant deduction) | ₱135,000 |
| Singapore | VAT Refund | 8% | ₱10,000 | ₱140,000 |
Sources: Wise, Global Blue
Rachelle explains, “I always buy at the brand’s origin because it’s cheaper. Chanel or LV in Paris, Bottega in Milan, Loewe in Spain. The price points are better and the options are better too.”
For Lynn, the refund system itself can make or break a shopping destination. “I prefer countries where tax is deducted in-store. I’ll skip the airport refund queue, thanks.”
It all depends on where you shop. Europe uses VAT, which is included in the price and refunded to tourists. Japan and Singapore use a tax-free system that deducts tax at the point of sale for eligible foreigners. The United States runs on a sales tax system. This is added on top of the sticker price, and unlike VAT, it’s not usually refundable.
Most US states, including shopping hubs like New York or California, do not offer tax refunds to foreign tourists. But Las Vegas offers some relief through duty-free shopping at Harry Reid International Airport. Tourists can buy select items like alcohol, cosmetics, and luxury goods without paying local taxes provided they show international travel documents. Some visitors may also be able to apply for limited refunds, but it requires meeting strict eligibility rules and visiting a special refund desk at the airport.
Outside of airports, only a handful of states like Louisiana, Texas, and Washington offer structured tax refund programs for tourists, and even then, conditions are strict and not always convenient.
“You only really feel the savings in places that take it off right away,” JR says. “That’s why I love Japan.”
Related story: Filipino travelers prefer Asian destinations for their vacays abroad
Related story: Upcoming attractions to explore in Singapore, Asia Pacific’s ‘best city’ for 2025
Japan: Shop now before it gets a bit complicated
Right now, Japan’s 10% consumption tax is instantly deducted in-store for tourists. That’s a big draw.
“It makes you more comfortable shopping. I felt the savings right away,” JR says. He once scored limited-edition Adidas sneakers for ¥17,000, which dropped to ¥14,000 post-tax.
But this convenience won’t last forever. Starting November 1, 2026, Japan will move to a refund-based system. Tourists will pay tax at checkout and apply for refunds before departure. And from April 1, 2025, Japan will no longer allow tax-free treatment on goods shipped abroad closing a popular loop for pasabuy buyers.
Europe offers the highest tax refunds—if you’re willing to put in the effort
VAT rates range from 17% to 27%, and refund processes are well-established. But there are caveats: minimum spending thresholds, documentation at the point of purchase, and the requirement to get your forms stamped at the airport before leaving the EU.
“The bigger the purchase, the higher the discounted amount will be,” says Rachelle, who once picked up a Chanel bag in Paris. “And store service can make or break the purchase. When investing in luxury goods, it would matter to be treated kindly at their store. It might even encourage you to buy more.”
Singapore doesn’t offer the biggest refund, but it’s smooth and stress-free
“Their airport refund process is very efficient,” Lynn says. With just 8% VAT and a clean, tech-forward system, the savings might not be massive but the experience makes up for it.
Related story: Leaving Las Vegas for Seven Magic Mountains
Related story: Must-visit museums in Paris beyond the Louvre and Orsay
Tips from seasoned shoppers (who are frequent travelers too!)
Rachelle explains, “I try to save some purchases that would be cheapest if I buy them in certain destinations.” She checks prices across regions and prefers buying from the country where the brand originates.
Lynn says, “If I really want something, I’ll find the nearest city. I once took a day trip to Singapore just for a bag.” She also tracks pasabuy groups on Instagram. “Sometimes, if it’s cheaper through a pasabuy seller, that’s already good enough.”
JR keeps it simple, “Sometimes Thailand is 25% cheaper than Singapore for the same bag. I get tips from sales associates or personal shoppers.”
So, where should you shop?
| Best for… | City | Why? |
| Highest refunds | Paris (or major European shopping cities) | Up to 20%, major luxury brands |
| Easiest process (for now!) | Tokyo | 10% tax off instantly |
| Efficient system | Singapore | Fast, smooth refund setup |
Sources: Wise, Global Blue, Japan National Tourism Organization, Sales Tax Institute, U.S. Customs and Border Protection, Las Vegas Airport Customs and Refund
