BIR, DOH, FDA Conduct Joint Inspection To Ensure VAT-Exempt Medicines Reach Filipinos

As seen on BIR’s official Facebook – The Bureau of Internal Revenue (BIR), together with the Department of Health (DOH) and the Food and Drug Administration (FDA), conducted a joint inspection today, 14 May 2026, in Muntinlupa City to strengthen monitoring and ensure compliance with VAT exemption policies for medicines and health products.

 

The activity supports the directive of President Ferdinand R. Marcos Jr. to make healthcare services and essential medicines more accessible and affordable for Filipinos. Under the guidance of Department of Finance Secretary Frederick D. Go, the BIR continues to implement tax relief measures that reduce the financial burden on Filipino patients requiring long-term treatment and maintenance medicines by ensuring proper application of Value-Added Tax (VAT) exemptions to qualified medicines and health products.

 

The BIR earlier issued Revenue Memorandum Circular (RMC) No. 27-2026, publishing the FDA-endorsed updated list of 2,263 VAT-exempt medicines. FDA Advisory No. 2026-0065 lists VAT-exempt health products under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The updated list covers 702 medicines for cancer, 535 for hypertension, 327 for diabetes, 300 for mental illness, 171 for high cholesterol, 152 for kidney disease, and 76 for tuberculosis.

 

BIR Commissioner Charlito Martin R. Mendoza emphasized that the BIR’s responsibility does not end with the issuance of revenue memorandum circulars.

 

“We have to make sure these policies are properly implemented so that Filipinos truly benefit from VAT-exempt medicines intended to ease the cost of treatment for chronic and critical illnesses. The BIR will continue to work closely with the DOH and FDA to assess whether drug establishments are properly implementing the pricing and availability of VAT-exempt medicines,” Commissioner Mendoza said.

 

“We, the agencies, will work together to ensure that patients can already benefit from the VAT exemption at the point of sale for these medicines,” he added.