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Search Results for: STANDARD POLICY FOR THE USE OF BIR FORM NO. 0605 FOR EXCISE TAX PURPOSE
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The VAT rate in the Philippines is 12%.
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Diabetes, high cholesterol and hypertension medicines shall be exempt from VAT.
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Medicines for cancer, mental illness, tuberculosis, and kidney diseases shall be exempt from VAT starting January 1, 2023.
The value-added tax (VAT) is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or services. The VAT Rate in the Philippines is 12%. The 12% VAT is applied on the taxable gross selling price of goods and properties and on the gross value of receipts from services and lease of properties. And the 12% VAT on the importation of goods is based on the total cost of importation.
Revenue Regulation No. 18-2020 issued on July 08, 2020 has exempted the following transaction from VAT:
Sale or importation of prescription drugs and medicines for:
- Diabetes, high cholesterol and hypertension beginning January 1, 2020; and
- Cancer, mental illness, tuberculosis, and kidney diseases beginning January 1, 2023.
However, the exemption from VAT shall only apply to the sale or importation by the manufacturers, distributors, wholesalers and retailer of drugs and medicines included in the “list of approved drugs and medicines” issued by the Department of Health (DOH) for this purpose.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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