RMC No. 81-2021: Publishes the letter from the Food and Drug Administration containing the “List of VAT-Exempt Products” pursuant to RA No. 11534 (CREATE Act)

Key points

1. Medicines for diabetes, high cholesterol and hypertension. VAT exemption on their sale or importation begins January 1, 2020.
2. Cancer, mental illness, tuberculosis medicines. The sale or importation of medicines for cancer, mental illness, tuberculosis and kidney diseases is VAT-exempt beginning January 1, 2021.
3. COVID-19 drugs, vaccines and devices. Drugs and vaccines prescribed and directly used for COVID-19 treatment, and medical devices directly used for COVID-19 treatment, are VAT-exempt from January 1, 2021 until December 31, 2023.

Deadlines and effectivity

• Diabetes, high cholesterol, hypertension medicines: beginning January 1, 2020
• Cancer, mental illness, tuberculosis, kidney disease medicines: beginning January 1, 2021
• COVID-19 drugs, vaccines and devices: January 1, 2021 until December 31, 2023