RMC No. 7-2024 — Reversion of the Value-Added Tax exemption of transactions specified under Section 109 (BB) of the National Internal Revenue Code (Tax Code) of 1997, as amended

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES National Office Building DEPARTMENT OF FINANCE Quezon City : JAN 11 2024

REVENUE MEMORANDUM CIRCULAR NO. 7- 20 24

SUBJECT Reversion of Value-Added Tax Exemption of Transactions Specified

of 1997, as amended Under Section 109. (BB) of the National Initernal Revenue Code (Tax Code)

TO All Internal Revenue Officials, Employees, Others Concerned

Enterprises Act" (CREATE), as implemented by Revenue Regulations (RR) No. 4-2021, 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: of Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for This Circular is issued to inform the public and all concerned that pursuant to Section 12

Sale or importation of the following:

(i) 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 covers, for COVID- 19 prevention; and

used for the treatment of COVID-19; and (ii) All drugs, vaccines and medical devices specifically prescribed and directly

Administration (FDA) for use in clinical trials, including raw materials directly necessary for the production of such drugs. (iii) Drugs for the treatment of COVID-19 approved by the Food and Drug

Thus, the above transactions shall now be subject to VAT starting January 1, 2024.

wide a publicity as possible. All internal revenue officials and employees are hereby enjoined to give this Circular as

This Circular shall take effect immediately

REMAT JMAGU. JR

K-1-SLO mmissioner of Internal Revenue

TERNAL COMMUNICATIONS DIVISION REAU OFINTERNALREVGNUE JAN 1 1 2020 BUREAU OF INTERNAL REVENUE Recoros mgt division NYTON JAN 11 ZU74 j 255 CONONA: 3 Dm

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