RMO No. 23-2020: Clarifies the issuance of Authority to Release Imported Goods for VAT Exemption on sale and importation of prescription drugs and medicines pursuant to Section 1 of RA No. 11467, further amending Section 109 (AA) of the NIRC of 1997, as amended, and as implemented in Revenue Regulations No. 18-2020

Summary

RMO No. 23-2020 clarifies the issuance of the Authority to Release Imported Goods (ATRIG) for VAT-exempt importation and sale of prescription drugs and medicines under Section 1 of RA No. 11467, as implemented in Section 2 of RR No. 18-2020.

Key points

1. Effectivity dates of the exemption. The exemption begins January 27, 2020 for diabetes, high cholesterol and hypertension medicines. It begins January 1, 2023 for cancer, mental illness, tuberculosis and kidney diseases.
2. ATRIG for exempt importations. For VAT purposes, the ATRIG is issued on all importations of articles exempt from VAT under RMO No. 35-2002. RDO No. 33 (Intramuros-Ermita-Malate) of Revenue Region No. 6 (Manila) currently implements it.
3. Who RDO No. 33 processes. RDO No. 33 processes ATRIG applications from manufacturers, distributors, wholesalers and retailers of drugs and medicines in the DOH “list of approved drugs and medicines”. The policies and procedures of RMO No. 35-2002 are strictly followed.

Who is affected

• Manufacturers, distributors, wholesalers and retailers of drugs and medicines in the DOH approved list

Deadlines and effectivity

• Diabetes, high cholesterol, hypertension: beginning January 27, 2020
• Cancer, mental illness, tuberculosis, kidney diseases: beginning January 1, 2023

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