AA-CC

• Sale or importation of prescription drugs and medicines for


  • Diabetes, high cholesterol, and hypertension beginning January 1, 2020
  • Cancer, mental illness, tuberculosis, and kidney diseases beginning January 1, 2021
  • Drugs, vaccines, and medical devices prescribed and directly used for COVID-19 treatment beginning January 1, 2021 until December 31, 2023
• Only the sale of drugs and medicines for diabetes, high cholesterol and hypertension was exempt from the VAT. Importation of the same remained to be subject to VAT (Rev. Reg. No. 25-2018)


  January 1, 2019 to December 31, 2019
• Sale or importation of capital equipment, its spare parts and raw materials, necessary for the production of personal protective equipment components


  • Coveralls
  • Gowns
  • Surgical caps
  • Surgical masks
  • N-95 masks
  • Scrub suits
  • Goggles and face shields
  • Double or surgical gloves
  • Dedicated shoes
  • Shoe covers

  actually began under R.A. No. 11469 March 25, 2020
• VAT-exemption for the sale or importation of capital equipment, its spare parts and raw materials, necessary for the production of PPE components


  January 1, 2021 to December 31, 2023
• For purposes of the threshold of 3,000,000, the husband and wife shall be considered separate taxpayers