(Revenue Memorandum Circular No. 65-2020, July 07, 2020)
This Tax Alert is issued to inform all concerned on the effectivity date of Republic Act (RA) No. 11467.
RA No. 11467 provided, among others, VAT exemption of sale or importation of prescription drugs and medicines for diabetes, high cholesterol, and hypertension beginning January 1, 2020, and increase in excise taxes on alcohol products, tobacco products and e-cigarettes.
The law provided an effectivity date of January 01, 2020 after its complete publication either in the Official Gazette or in a newspaper of general circulation. However, RA No. 11467 was only published on January 27, 2020. Thus, as clarified by Department of Finance thru its Memorandum dated June 30, 2020, the law became effective only on January 27, 2020. It cannot be applied retroactively from January 1, 2020.
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