Summary
RMC No. 7-2024 informs taxpayers that certain transactions under Section 109 (BB) of the Tax Code are no longer VAT exempt effective January 1, 2024.
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Key points
- Legal basis. The reversion follows Section 12 of RA No. 11534 (CREATE Act), as implemented by Revenue Regulations No. 4-2021.
- Transactions now subject to VAT. These are the sale or importation of capital equipment, spare parts and raw materials for making COVID-19 personal protective equipment components, and drugs, vaccines and medical devices prescribed and directly used for treating COVID-19. They also include FDA-approved COVID-19 drugs for clinical trials and the raw materials directly needed to produce them.
Who is affected
- Sellers and importers of the listed COVID-19 related items
Deadlines and effectivity
- VAT applies starting January 1, 2024
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.