Publishing the Full Text of the Letter from FDA of DOH Containing the "List of VAT-Exempt Products"

July 6, 2021 REVENUE MEMORANDUM CIRCULAR NO. 81-2021 SUBJECT : Publishing the Full Text of the Letter from the Food and Drug Administration (FDA) of the Department of Health (DOH) Containing the "List of VAT-Exempt Products" Pursuant to Republic Act No. 11534 Otherwise Known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act TO : All Internal Revenue Officers, Employees and Others Concerned For the information and guidance of all internal revenue officers, employees and others concerned, attached is the letter dated June 17, 2021 from Rolando Enrique D. Domingo, Director General of FDA, and the copy of the "List of VAT-Exempt Products" consisting of fifty-eight (58) pages. The VAT exemption for the sale or importation of the following shall take effect on: a. Medicines for diabetes, high cholesterol, and hypertension beginning January 1, 2020 ; b. Medicines for cancer, mental illness, tuberculosis, and kidney diseases beginning January 1, 2021 ; c. Drugs and vaccines prescribed and directly used for COVID-19 treatment beginning January 1, 2021 until December 31, 2023 ; and d. Medical devices directly used for COVID-19 treatment beginning January 1, 2021 until December 31, 2023 . All internal revenue officials and employees are hereby enjoined to give this Circular as wide a publicity as possible. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ATTACHMENT Republic of the Philippines Department of Health FOOD AND DRUG ADMINISTRATION June 17, 2021 CAESAR R. DULAY Commissioner Bureau of Internal Revenue Quezon City SUBJECT : Endorsement of the Consolidated List of VAT-Exempt Products under Republic Act Nos. 10963 and 11534 Dear Commissioner Dulay: Greetings! This is in reference to our endorsement dated 9 June 2021, endorsing the list of VAT-Exempt Products ( i.e. , medicines for hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes, and high cholesterol, and medicines and medical devices for COVID-19), under Sec. 4.109-1, Item (aa) of Republic Act (RA) No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act." CAIHTE For ease in reference, may we provide you with the consolidated list of VAT-Exempt Products, which includes the previously-circularised lists through Revenue Memorandum Circular Nos. 4-2019, 62-2020, 101-2020, following Republic Act No. 10963, otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN) Law." Should there be any questions or clarifications regarding the list, please coordinate with the following: - Gabrielle S. Gabriel at [emailprotected] , for the list of medicines for hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes, and high cholesterol; - Anna Melissa S. Guerrero, MD, MPH (HTA) at [emailprotected] , for the list of medicines and medical devices for COVID-19. Thank you very much. Yours truly, (SGD.) ROLANDO ENRIQUE D. DOMINGO, MD Director General A. List of Medicines for Hypertension B. List of Medicines for Cancer C. List of Medicines for Mental Illnesses D. List of Medicines for Tuberculosis E. List of Medicines for Kidney Diseases F. List of Medicines for Diabetes G. List of Medicines for High Cholesterol H. List of Drugs and Vaccines Prescribed and Directly Used for COVID-19 Treatment I. List of Medical Devices Directly Used for COVID-19 Treatment