On May 18, 2022 the BIR Issued the Revenue Memorandum Circular No. 71-2022, which circularizes the Joint Memorandum Circular No. 1-2022 entitled “Guidelines on the Provision of the Mandatory Statutory Benefits and Privileges of the Senior Citizens and Persons with Disabilities on their Purchases through Online (E-Commerce) and Phone Call/SMS”.
The following were the highlights included in the Joint Memorandum Circular No. 1-2022:
- Senior Citizens (SC) or a Person with Disabilities (PWD) shall be entitled to the 20% discount and 12% Value-Added Tax (VAT) exemption of their purchase of goods and services; and 5% special discount for basic necessities and prime commodities for their exclusive use and enjoyment.
- In the purchase of goods and services which are the subject of promotional discount, the SC or the PWD can avail of the establishment’s offered discount of the 20% discount with VAT exemption of the 5% special discount, whichever is applicable under his valid SC ID or PWD ID.
- In cases wherein the buyer or customer is both SC and PWD, he shall be entitled only to a single 20% discount, with VAT exemption, or 5% special discount whichever isis applicable with his valid SC ID or PWD ID.
- Drugs identified as “essential’ and “not essential’ shall be considered as “Basic Necessities” and “Prime Commodities”, respectively. However, for purposes of determining the rightful statutory discount, the SC or PWD shall be granted the flat discount of 20%.
- The total amount of offline and online purchase of SCs and PWDs per calendar week shall not exceed the amount of Php 1,300 without carry-over of the unused amount, unless otherwise increased, provided that the purchase of medicine shall no longer be limited by the Php 1,300 ceiling.
- The SC must present his SC Identification Card (ID) issued by the office of the Senior Citizens Affairs (OSCA) in the city or municipality where the senior citizen resides, or any government-issued ID, which reflects the name, picture, date of birth and nationality of the senior citizen.
- The PWD must present the PWD ID issued by the Persons with Disability Affairs Office (PDAO) or the City/Municipality Social Welfare and Development Office (C/MSWDO) of the place where the person with disability resides, or the NCDA.
- If a purchaser is both a SC and a PWD, the purchaser shall only be allowed to avail either the discount for SCs or the discount for PWDs, and he shall present the relevant ID.
- If the purchaser is a child with disability, the parents have the full authority to purchase the product for their child and must only present the ID as required.
- On the purchase of group meals, the basis of the 20% discount shall be in the amount corresponding to the combination of the most expensive and biggest single servicing meal with beverage served in a quick service restaurant, is deemed flexible and is adjusted accordingly by food establishments to estimate a single food purchase for an individual SC and PWD.
- For purchases made through the internet or online platform, the SC or PWD must, prior to placement or order, declare to the online platform/merchant that he is a SC or a PWD.
- Upon delivery of the goods/orders or performance of the service purchased through the online platform, the SC or the PWD or his duly authorized representative shall present the original copy of the SC or the PWD proof of entitlement which was attached during the confirmation of his orders, together with the authorization letter, if applicable, otherwise, the full amount of the goods/orders or services will be charged.
- The same rules apply to purchases made through the telephone or mobile phone call.
- The business establishments shall have the right to act on any abuse, misinterpretations, falsification, or any other acts contrary to law on the availment of the SC or PWD discount by blocking or suspending the account or name of the erring person.
- Any individual or business establishment who fails or refuses to observe the statutory discount afforded to SCs and PWDs may be held liable for the penalties provided by law.