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BIR instructs importers of VAT-exempt prescription drugs to get import tax clearance

Published Jul 16, 2020 11:14 am

The Bureau of Internal Revenue (BIR) has instructed manufacturers, importers, and distributors of Value-Added Tax (VAT)-exempt prescription drugs to secure Authority to Import Goods (ATRIG) from the Intramuros revenue district office of the Manila revenue region.

(MANILA BULLETIN)

BIR Commissioner Caesar Dulay issued the directive in Revenue Memorandum Order No. 23-2020 to simplify the process in getting the tax clearance.

The BIR had come out with a regulation exempting buyers of selected prescription medicines from paying the additional 12 percent VAT to effectively lower the cost.

The VAT-exempt drugs were based on the list submitted by the Department of Health to the BIR.

They included medicines for diabetes, high cholesterol, hypertension, cancer, mental illness, tuberculosis, and kidney diseases.

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