Pursuant to the provisions on Value-Added Tax (VAT) exemptions under the Corporate Recovery and Tax Incentives for Enterprises (Create) Act, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 81-2021 to inform the public regarding the updated and consolidated list of VAT-exempt products, including the following:

a. Medicines for diabetes, high cholesterol and hypertension beginning Jan. 1, 2020

b. Medicines for cancer, mental illness, tuberculosis and kidney diseases beginning Jan. 1, 2021;

c. Drugs and vaccines prescribed and directly used for coronavirus disease (Covid-19) treatment beginning Jan. 1, 2021 until Dec. 31. 2023; and,

d. Medical devices directly used for Covid-19 treatment beginning Jan. 1, 2021 until Dec. 31, 2023.

RMC 81-2021 amends the previously circularized lists through RMC 4-2019, 62-2020 and 101-2020, following the implementation of Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion Law.

The complete list of VAT-exempt products can be accessed in the following websites:

a. Bureau of Internal Revenue (;

b. Department of Health (; and,

c. Food and Drug Administration (


Please be guided accordingly.

Source: P&A Grant Thornton


As published in SunStar Cebu, dated 21 July 2021