Philippines: Guidelines on VAT exemption for senior citizens and persons with disabilities on certain online purchases
Mandatory statutory privileges of senior citizens and persons with disabilities on their online and phone call/SMS purchases
Senior citizens and persons with disabilities on certain online purchases
The Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 71-2022 (18 May 2022) that provides guidelines on the mandatory statutory privileges of senior citizens and persons with disabilities on their online and phone call/SMS purchases, which include:
- 20% discount and exemption from value-added tax (VAT), if applicable, on: (1) medicines and medical supplies; (2) professional fees of attending physicians in all private hospitals, medical facilities, and outpatient clinics and home health care services; (3) professional fees and licensed professional health providing home health, care services; (4) medical and dental services, diagnostic and laboratory fees in all private hospitals, medical facilities, outpatient clinics, and home health care services; (5) actual fare for land transportation travel in public utilities, including domestic air transport services and sea shipping vessels; (6) utilization of services in hotels and similar lodging establishments, restaurants, and recreation centers; (7) admission fees charged by theaters, cinema houses and concert halls, circuses, leisure and amusement; (8) foods, drinks, desserts and other consumable food items; and, (9) funeral and burial services
- 5% special discount (without exemption from VAT) on: (1) basic necessities (i.e., goods vital to the needs of consumers for their sustenance and existence); and (2) prime commodities (i.e., goods not considered basic necessities but still essential to consumers)
Read an August 2022 report prepared by the KPMG member firm in the Philippines
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