Summary
RMC No. 137-2022 further clarifies VAT Zero Rate (0%) on Health Maintenance Organization (HMO) Plans acquired by Registered Export Enterprises (REEs) and prescribes a template for Detailed Information.
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Key points
- Link to RMC No. 24-2022. The list of other expenditures in Q and A No. 14 of RMC No. 24-2022 is not exclusive. Unlisted expenditures may be zero-rated if directly attributable to the REE’s registered activity.
- Covered HMO Plans. Zero-rating applies to HMO Plans for employees directly involved in the registered project or activity, as part of their compensation package.
- Excluded HMO Plans. It does not extend to HMO Plans for employees’ dependents or for employees not directly involved in the registered operations.
- Detailed Information. REEs give suppliers detailed information using the format in Annex A. Suppliers include it in their application for VAT zero-rate.
Who is affected
- Registered Export Enterprises (REEs)
- Suppliers of HMO Plans to REEs
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.