Value Added Tax (VAT) Exemption on the Sale of Drugs
In accordance with the provision of section 109 (AA) of Republic Act No. 8424 otherwise known as the “National Internal Revenue Code (NIRC) of 1997” as amended by RA 10963 or the Tax Reform Acceleration and Inclusion (TRAIN) Law, the Department of Finance (DOF), Department of Health (DOH), Bureau of Internal Revenue (BIR) and the Food and Drug Administration (FDA) issued a Joint Administrative Order to provide guidelines on VAT exemption of medicines prescribed for hypertension, diabetes and high cholesterol.
Frequently asked questions
English
What are the benefits under the TRAIN law in relation to Drugs and Medicines?
Who may avail of the VAT exemption?
May Senior Citizens and Persons with Disabilities (PWDs) avail of the VAT exemption under TRAIN law?
Where can we find the complete list of VAT-exempt drugs prescribed for Diabetes, Hypertension (high-blood), and High Cholesterol?
How do I know that the Drugs for Diabetes, Hypertension, and High Cholesterol I bought are exempted from VAT?
Filipino
Related Issuances
Republic Act No. 8424 – National Internal Revenue Code (NIRC) of 1997
Republic Act No. 10963 – Tax Reform Acceleration and Inclusion (TRAIN) Law
Joint Administrative Order No. 2.2018- Implementing Guidelines on the VAT Exemption of the Sale of Drugs prescribed for diabetes, high cholesterol and hypertension
Administrative Order No. 2018-0020 - Amendment to Administrative Order (AO) No. 2016-0009 Revised Implementing Guidelines on Electronic Drug Price Monitoring System (EDPMS)
News and updates regarding VAT Exemption on the sale of drugs
- The Regional Drug Price Monitoring Officers (RDPMOs) of the Centers for Health Development, in coordination with the Pharmaceutical Division (PD) of the Department of Health are conducting quarterly monitoring and drug price validation to check if the VAT exemption guidelines are being followed.
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Contact Us:
Telephone Number: 02-8757734 Loc. 253
Address: 4th Floor, Philippine Blood Center, Lung Center Compound, Quezon Avenue, Quezon City
Email Address: dohncpam@gmail.com