BIR expands list of VAT-exempt medicines
Credit to Author: Louise Maureen Simeon| Date: Wed, 31 Jan 2024 00:00:00 +0800
MANILA, Philippines — The Bureau of Internal Revenue (BIR) has issued an updated list of value-added tax or VAT-exempt medicines for diseases such as cancer, hypertension and diabetes.
Sixteen items have been added to the list of medications exempt from the 12 percent VAT, which include medicines for cancer, diabetes, high cholesterol, hypertension, kidney disease, mental illness and tuberculosis.
The Food and Drug Administration endorsed the updated list, which was approved by the BIR under the Tax Reform for Acceleration and Inclusion Law and the Corporate Recovery and Tax Incentives for Enterprises Act.
The BIR also removed Macitentan film-coated tablets from the list following the recommendation of the Department of Health.
The government implemented VAT exemption for prescription drugs used to treat cardiovascular diseases and diabetes in January 2019.
The exemptions apply to the medicine sale by manufacturers, distributors, wholesalers and retailers.