Sellers of prescription drugs and medicines for diabetes, high cholesterol, and other serious illnesses may claim Value-Added Tax (VAT) refund.
This was announced by Commissioner Caesar Dulay of the Bureau of Internal Revenue (BIR) when he signed Revenue Regulations No. 18-2020 which implemented certain provisions of Republic Act 11467.
The tax refund grant followed after the BIR issued last month separate regulations exempting buyers of these medicines from the 12 percent VAT.
The sellers include manufacturer, importer, distributor, wholesalers, and retailer.
The guideline stressed that input (expenses) VAT refund will only made available to those who have not yet reported and claimed it.
Also exempt from VAT based on the list furnished by the Department of Health and the Food and Drug Administration to the BIR are prescription medicines for hypertension, cancer, mental illness, tuberculosis, and kidney Diseases.