BIR on tax-free coronavirus vaccine importation: No resale, commercial use

MANILA, Philippines—The Bureau of Internal Revenue (BIR) on Monday (April 12) released the guidelines for tax-free perks to be enjoyed by coronavirus vaccine importers under the COVID-19 Vaccination Program Act of 2021.

Citing Republic Act (RA) No. 11525, Finance Secretary Carlos Dominguez III and Internal Revenue Commissioner Caesar Dulay said in Revenue Regulations (RR) No. 1-2020 that starting Jan. 1, 2021, public and private procurement, importation, donation, storage, transport, deployment, as well as administration of coronavirus vaccines were exempted from Customs duties, 12-percent value-added tax (VAT), excise and donor’s tax, among other fees.

The tax-exemption incentive will be provided as long as the imported vaccines are not resold or used for commercial purposes.

For this purpose, VAT “shall not be part of the contract price for the procurement” of vaccines for SARS Cov2, the coronavirus that causes COVID-19.

Because they’re tax-free, vaccines would be immediately released from ports of entry and would not require authority to release imported goods documents. The BIR may, however, audit or conduct post-investigation of vaccine shipments released by the BOC.

Service providers for storage, transport, deployment, and administration of coronavirus vaccines would also be free from VAT and contract prices should also be devoid of any levy.

Importers, however, must submit documents to enjoy the tax-free privileges. these included:

• Certified true copies of multi-party agreement on the purchase of the vaccines
• Certificate of product registration or emergency use authorization from the Food and Drug Administration
• Sworn declaration that the shipment is not for resale or commercial use

Donors, meanwhile, needed to present a certified true copy of their duly accepted certificate or deed of donation.

In case qualified taxpayers had previously paid dues between Jan. 1, 2020 and before these guidelines took effect, they will all be refunded by the government.

TSB