RMC No. 42-2023: Publishes the February 21, 2023 letter from the Food and Drug Administration of the DOH endorsing updates to the List of VAT-Exempt Products under RA No. 10963 (TRAIN Law) and RA No. 11534 (CREATE Act)

Summary

RMC No. 42-2023 publishes the February 21, 2023 letter of the Food and Drug Administration endorsing updates to the List of VAT-Exempt Medicines under RA Nos. 10963 (TRAIN Law) and 11534 (CREATE Act).

Key points

1. Letter published. The letter is from FDA Director General Samuel A. Zacate, Jr. and is dated February 21, 2023.
2. Changes to the list. The list now includes certain medicines for cancer, diabetes, kidney disease, mental illness and tuberculosis. It also corrects medicines for high cholesterol and hypertension.
3. When the exemption starts. Per Q&A No. 1 of RMC No. 99-2021, the VAT exemption of the covered items under the CREATE Act takes effect on the date the FDA publishes the list updates.

Deadlines and effectivity

• Letter dated February 21, 2023
• VAT exemption effective on FDA publication date of the list updates

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.