Tax Alert No. 48 [Revenue Memorandum Circular (RMC) Nos. 124-2022 dated 22 August 2022 and 125-2022 dated 26 August 2022]

Publishing the Full Text of the 15 August 2022 and 17 August 2022 Letters from the Food and Drug Administration (FDA) of the Department of Health (DOH) Endorsing Updates to the List of VAT-Exempt Medicines Under Republic Act (RA) No. 11534 Known as the Corporate Recovery and
Tax Incentives for Enterprises (CREATE) Act

The Commissioner of Internal Revenue (CIR) has issued RMC Nos. 124-2022 and 125-2022, publishing the full text of the 15 August 2022 and 17 August 2022 letters from the FDA of the DOH on the inclusion of medicines prescribed for cancer, tuberculosis, and mental illnesses, correction to medicines prescribed for diabetes and hypertension and deletion of certain medicines prescribed for COVID-19 treatment previously included in the published List of VAT-Exempt Medicines Under RA No. 11534 or the CREATE Act.

The effectivity of the VAT exemption of the covered medicines and medical devices under the CREATE Act shall take effect on the date of publication by the FDA of the updates to the said list.  

You may access the full version of the Circulars and Annexes through the BIR website.