BIR releases list of VAT-exempt medicines for 2024
The Bureau of Internal Revenue (BIR) has expanded its list of medicines exempt from value-added tax (VAT) this 2024 and it includes medications for cancer, diabetes, hypertension, kidney disease, mental illness, and tuberculosis.
The new VAT-exempt list, part of Revenue Memorandum Circular No. 17-2024, was issued after the Food and Drug Administration endorsed an update.
There are 21 medications on the list for conditions such as cancer, diabetes, high cholesterol, hypertension, kidney disease, mental illness, and tuberculosis. Here's a full list of the drugs below:
The new medications will join the 59 other medicines exempted from the 12% tax last year under Section 109 (AA) of the National Internal Revenue Code of 1997 as amended by the TRAIN Law and CREATE Act.
"Updating the list of VAT-exempt medicine is part of Taxpayer Service," BIR Commissioner Romeo Lumagui Jr. said. "We will update taxpayers as soon as possible of exemptions given to them by existing laws.
In January 2019, the BIR began exempting drugs for diabetes, high cholesterol, and hypertension from value-added tax.