The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 17-2024 announcing the exemption from VAT of certain medicines for cancer, diabetes, hypertension, kidney disease, mental illness, and tuberculosis.
The circular is an update to the current list of VAT-exempt drugs and medicines under Section 109(AA) of the National Internal Revenue Code of 1997, as amended by TRAIN Law and CREATE Act.
BIR Commissioner Romeo D. Lumagui, Jr. issued the circular due to the letter from the Food and Drug Administration (FDA) of the Department of Health (DOH) that endorsed an update on the list of VAT-Exempt Products under Republic Act No. 10963 and 11534.
“Updating the list of VAT-exempt medicines is part of Taxpayer Service. We will update taxpayers as soon as possible of exemptions given to them by existing laws.” Lumagui said.
For this year, the BIR will focus on Excellent Taxpayers Service which includes the issuance of circulars that would ease the financial burden of Filipinos that are suffering from the said diseases. Lumagui aims to make the BIR a goal- and service-oriented agency.
“Ito ang handog ng BIR sa Bagong Pilipinas, serbisyong mabilis at maaasahan. Ito pong 21 na gamot na tinanggalan ng VAT ay simula pa lamang ng mga serbisyong aming ibibigay ngayong 2024,” Lumagui added.