FDA removes VAT exemption for COVID-19 medicines

The Food and Drug Administration (FDA) delisted on Friday COVID-19 medicines and devices from the list of value-added tax (VAT)-exempt health products.

Among the delisted medicines for COVID-19 treatment include Acetated Ringer's, Aspirin, Baricitinib, Clonazepam, Dalteparin Sodium, Dobutamine, Enoxaparin, Favipiravir, Fentanyl, Fondaparinux, Haloperidol, Heparin, Ketamine, Midazolam, Morphine, Oxycodone, Remdesivir, Tocilizumab, and Warfarim.

The FDA said that this move comes following the provisions of Republic Act (RA) No. 11534, also known as the "Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act."

Under RA No. 11534, the FDA noted that certain health products, including drugs for various conditions and COVID-19 medicines and medical devices were initially granted VAT exemption.

Pursuant to this, the agency is directed to identify and transmit the VAT-exempt health products to other implementing agencies, such as the Bureau of Internal Revenue, Bureau of Customs, and the Department of Trade and Industry.

VAT-exemption of medical devices, drugs, and vaccines prescribed and directly used for COVID-19 treatment will be valid until 31 December.