Revenue Memorandum Circular · RMC
RMC No. 7-2024
To inform taxpayers of the reversion of the Value-Added Tax (VAT) exemption of transactions specified under Section 109 (BB) of the Tax Code of 1997, as amended, effective January 1, 2024.
- Document type
- RMC
- Number
- 7
- Year
- 2024
- Text quality
- Not specified
Document text
Reference copy · verify against the official sourceRMC No. 7-2024 (issued January 11, 2024) informs taxpayers that the VAT exemption of transactions under Section 109 (BB) of the Tax Code of 1997, as amended, has reverted. Pursuant to Section 12 of the CREATE Act (RA 11534), as implemented by Revenue Regulations No. 4-2021, the sale or importation of (a) capital equipment, spare parts, and raw materials for producing COVID-19 PPE components; (b) drugs, vaccines, and medical devices for COVID-19 treatment; and (c) FDA-approved COVID-19 drugs for clinical trials, including raw materials for such drugs, is no longer exempt from VAT effective January 1, 2024, and is now subject to VAT.