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Manila Bulletin devider Philippines devider BIR releases list of 230 prescription drugs exempt from 12% VAT

BIR releases list of 230 prescription drugs exempt from 12% VAT

Published Jun 24, 2020 12:00 am
By Jun Ramirez The Bureau of Internal Revenue (BIR) has released the generic names of additional 230 prescription drugs and medicines exempt from the 12 percent value-added tax (VAT). Bureau of Internal Revenue (MANILA BULLETIN) Bureau of Internal Revenue (MANILA BULLETIN) These medical substances are for the treatment of diabetes, high cholesterol, and hypertension. They were not previously included in the list of prescription drugs exempt from VAT under the original Republic Act 11467. Revenue Commissioner Caesar Dulay circularized the list to regional and district offices nationwide for proper implementation after receiving the same from the Food and Drug Administration. The tax exemption grant started for purchases made last January 27. The VAT exemption is separate from the 20 percent discount granted to senior citizens (SC) and persons with disability (PWD) for purchases of drugs, selected supplies, and services. Effectively, SC and PWD get a total 32 percent discount for their purchases of drugs and medicines.
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