- Expansion of VAT-Exempt Medicines: The Philippine government has expanded its list of VAT-exempt medicines under the CREATE Act, aiming to enhance healthcare affordability. The latest update includes essential treatments for chronic and life-threatening diseases, such as cancer, diabetes, and tuberculosis, significantly benefiting patients and their families.
- Compliance Implications for Businesses: Pharmaceutical companies and healthcare providers must update their VAT codes in invoicing and ERP systems to reflect these new exemptions, ensuring accurate tax filings and avoiding penalties. Additionally, businesses should align their import and distribution strategies with the updated VAT-exempt list.
- Strategic Importance of VAT Management: The dynamic nature of the VAT-exempt medicines list in the Philippines underscores the need for businesses to treat indirect tax management as a strategic function. Staying informed about regulatory changes and leveraging compliance technology are crucial for ensuring adherence to evolving VAT policies while supporting public health initiatives.
Source VAT IT Compliance
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