Sale or importation of prescription drugs

Sale or importation of prescription drugs "I just want to know the medicines that are not subject to value-added tax (VAT). I heard that the government recently passed a law exempting the sale of certain medicines from VAT.Princess Dear Princess,Section 109 (AA) (i) (ii) of Republic Act (RA) 8424,as amended, otherwise known as the “National Internal Revenue Code of 1997”, that was further amended by RA 11467, provides: “SECTION 109. Exempt Transactions. — (1) Subject to the provisions of Subsection 2 hereof, the following transactions shall be exempt from the value-added tax: xxx“(AA) Sale or importation of prescription drugs and medicines for: “(i) Diabetes, high cholesterol, and hypertension beginning January 1, 2020 and“(ii) Cancer, mental illness, tuberculosis, and kidney disease beginning January 1, 2023. “Provided, That the DOH shall issue a list of approved drugs and medicines for this purpose within sixty (60) days from the effectivity of this Act and” [Emphasis supplied]Clearly, the sale or importation of prescription drugs and medicines for diabetes, high cholesterol and hypertension is exempted from VAT. With respect to prescription drugs and medicines for cancer, mental illness, tuberculosis and kidney disease, their exemption from the VAT shall only begin on Jan. 1, 2023. The exempted drugs or medicines, however, are only those included in the list of VAT-exempt drugs or medicines as issued by the Department of Health.We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net" - https://www.affordablecebu.com/