BIR Issuances – RMC 7-2024
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The BIR reverses the Value-Added Tax exemption of transactions specified under Section 109 (BB) of the National Internal Revenue Code (Tax Code) of 1997, as amended
Revenue Memorandum Circular (RMC) No. 7-2024
11 January 2024
Under Section 12 of RA 11534, the following transactions under Section 109 (BB) of the Tax Code of 1997, as amended, shall no longer be exempt from Value-Added Taxes (VAT) effective January 1, 2024, to wit:
Sale or importation of the following:
- Capital equipment, its spare parts and raw materials, necessary for the production of personal protective equipment components such as coveralls, gown, surgical cap, surgical mask, N-95 mask, scrub suits, goggles and face shield, double or surgical gloves, dedicated shoes, and shoe cover, for COVID-19 prevention; and
- All drugs, vaccine and medical devices specifically prescribed and directly used for the treatment of COVID-19; and
- Drugs for the treatment of COVID-19 approved by the Food and Drug Administration (FDA) for use in clinical trials, including raw materials directly necessary for the production of such drugs.
Thus, the above transactions shall now be subject to VAT starting JANUARY 1, 2024.
Copy of the RMC can be accessed below.
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