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BIR Revenue Regulations No. 25-2018 (27 December 2018)
Regulations Implementing Section 109 (AA) of the National Internal Revenue Code (NIRC) of 1997, as amended, Pursuant to Section 34 of the Republic Act (RA) No. 10963 of the “Tax Reform for Acceleration and Inclusion (TRAIN Law)” Providing for Value-Added Tax (VAT) Exemption on the Sale of Drugs and Medicines Prescribed for Diabetes, High Cholesterol and Hypertension
The exemption from VAT provided herein shall apply to the sale by manufacturers, distributors, wholesalers and retailers of drugs and medicines prescribed for the treatment and/or prevention of diabetes, high-cholesterol and hypertension starting 01 January 2019. The importation of the above-described drugs and medicines shall be subject to VAT under Section 107 of the Tax Code as amended.
In accordance with the invoicing requirements, the words “VAT-EXEMPT" shall prominently be indicated in the invoice issued for the sale of drugs and prescribed for the treatment and prevention of diabetes, high-cholesterol and hypertension.
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