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.

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