Senior citizen and PWD discounts: the rules, with worked examples
Last reviewed · 8 min read · Checked against the BIR issuances listed under Sources
The short answer
Seniors and PWDs get 20% off plus VAT exemption on covered goods and services, such as restaurant meals and medicines. A VAT-registered store divides the price by 1.12 to remove VAT, then takes 20% off: a ₱560 meal becomes ₱400. A non-VAT store takes 20% off the price: ₱560 becomes ₱448. Groceries don't get the 20%, but basic necessities get a separate 5% discount, capped at ₱125 a week.
This is general information, not tax advice. Rules change and your case may differ, so check with your RDO or a CPA before you act on it.
Senior citizens and persons with disability (PWDs) get 20% off, and VAT exemption, on covered goods and services. The order of the steps matters. A VAT-registered store removes the VAT first and then takes 20% off. A non-VAT store takes 20% off the price. Here are the rules, with worked examples you can check against the free SC/PWD and VAT calculator.
Who gets what
| Who | Discount | Law |
|---|---|---|
| Senior citizens: resident Filipino citizens aged 60 and up | 20% plus VAT exemption on covered items | RA 9994 |
| PWDs: Filipino citizens with a PWD ID | 20% plus VAT exemption on covered items | RA 10754 |
| Solo parents who earn under ₱250,000 a year | 10% plus VAT exemption on baby items for a child up to 6 years old | RA 11861 |
| National athletes and coaches | 20% on covered items | RA 10699 |
For seniors, the covered list includes medicines and vaccines, medical and dental services, lab fees, fares, hotels, restaurants, recreation centers, admission fees and funeral services, for the senior's own use. The PWD list under RA 10754 is similar.
RA 10699 doesn't mention a VAT exemption for national athletes and coaches. Ask your CPA how to treat VAT on those sales.
Worked example: a VAT-registered café
A senior orders a meal priced at ₱560, VAT included.
| Menu price (VAT included) | ₱560.00 |
| Remove the 12% VAT: ₱560 ÷ 1.12 | ₱500.00 |
| Less 20% of ₱500 | −₱100.00 |
| The senior pays (VAT-exempt) | ₱400.00 |
|---|
The common mistake is taking 20% off ₱560 (₱112) and then removing VAT, or taking 20% and leaving the VAT in. The BIR's own examples remove VAT first: RMC 38-2012 for seniors and RR 5-2017 for PWDs. RR 5-2017's example is exactly double this one: ₱1,120, less ₱120 VAT, is ₱1,000, less ₱200 discount, is ₱800 due.
Worked example: a non-VAT store
A non-VAT store has no VAT to remove, so the 20% comes off the selling price.
| Selling price | ₱560.00 |
| Less 20% of ₱560 | −₱112.00 |
| The customer pays | ₱448.00 |
|---|---|
| 3% percentage tax is on what you received: ₱448 × 3% | ₱13.44 |
RR 5-2017 shows this method for PWDs, and says the discount is left out when you compute the 3% percentage tax. For seniors, RR 7-2010 has no worked non-VAT example, and its wording on "other indirect taxes" is less clear. Confirm the method for senior sales with your CPA.
Group meals
Only the senior's or PWD's own share gets the discount. If the orders can't be split, RMC 38-2012 gives this formula: total bill ÷ number of diners, less 12% VAT, × 20%.
Four diners share a ₱2,240 bill and one is a senior:
- Senior's share: ₱2,240 ÷ 4 = ₱560, so ₱500 without VAT, and a ₱100 discount. The senior pays ₱400.
- The other three pay their ₱1,680 in full, VAT included.
- Bill: ₱2,080.
If every diner is a senior with an ID, each one gets the discount.
Groceries and a sari-sari store
RR 7-2010 says the 20% on food covers restaurants. Groceries and snacks from an ordinary store don't get the 20%. Medicines are different: the 20% on medicines applies in every establishment that sells them.
For basic necessities and prime commodities, seniors and PWDs get a separate 5% discount under DTI-DA-DOE Joint Administrative Order 24-02 (2024):
- 5% of the regular retail price, with VAT still charged.
- Capped at ₱125 of discount a week, which is ₱2,500 of purchases. Online and offline purchases count together, and there's no carryover. The old cap was ₱65 on ₱1,300.
- The buyer shows an ID and a purchase booklet, which can be electronic.
- Stores registered as a Barangay Micro Business Enterprise (BMBE) and CDA-registered cooperatives are exempt.
IDs, booklets and signatures
- Seniors: an OSCA ID, a passport, or another government ID showing age and citizenship.
- Senior medicine purchases: the purchase booklet is no longer required. DOH AO 2024-0017 dropped it, and FDA Circular 2025-005 carries this out for drug outlets. A prescription is still needed, except for over-the-counter medicines.
- PWDs: the PWD ID. For medicines, we found no rule dropping the PWD purchase booklet under DOH AO 2017-0008, so treat it as still required.
- Solo parents: the Solo Parent ID and the Solo Parent Booklet (RR 1-2023).
- On a POS or cash register invoice (RR 10-2015): the senior's or PWD's TIN, their OSCA or PWD ID number, the discount broken down (the 20% and the 12% VAT exemption), and their signature. For purchases made online or through an app, RR 8-2023 dropped the signature. The ID number is still needed.
Records and your tax deduction
- Keep a separate record of each senior sale: name, OSCA ID, gross sale, discount, date and invoice number (RR 7-2010). For PWDs, the name and PWD ID must be in your sales record, or the deduction and the input VAT claim can be disallowed (RR 5-2017).
- The discount is a deduction from your gross income, not a tax credit.
- You can't stack discounts. If an item is on promo, the senior gets the promo or the 20%, whichever is higher. A senior who is also a PWD gets one 20% per sale.
Doing it in Kassly
Kassly applies the SC/PWD discount at the counter on every plan. It removes VAT first on VAT-inclusive prices, asks for the ID number and name, and prints a signature line. The free calculator uses the same maths. Kassly isn't BIR-accredited, so its printout is a record for you, not your invoice. See SC and PWD in Kassly.
Frequently asked questions
How do you compute the senior citizen discount with VAT?
Divide the VAT-inclusive price by 1.12 to remove the 12% VAT, then take 20% off the result. A ₱560 meal becomes ₱500 without VAT, less ₱100, so the senior pays ₱400, and the sale is VAT-exempt.
How does a non-VAT store compute the discount?
There is no VAT to remove, so take 20% off the selling price: ₱560 less ₱112 is ₱448. RR 5-2017 shows this for PWDs and leaves the discount out of the 3% percentage tax base, so the tax is on ₱448. Confirm the method for senior sales with your CPA.
Do seniors still need a purchase booklet for medicines?
No. DOH AO 2024-0017 dropped the booklet for seniors buying medicines, and FDA Circular 2025-005 carries this out. They show an ID and, except for over-the-counter medicines, a prescription. We found no similar change for the PWD medicine booklet.
Does a sari-sari store have to give the 20% discount?
Not on groceries and snacks: RR 7-2010 limits the 20% on food to restaurants. Medicines get the 20% wherever they are sold. Basic necessities get a separate 5% discount capped at ₱125 a week, but stores registered as a BMBE and cooperatives are exempt from that.
Can a senior get both a promo and the 20% discount?
No. The senior gets the promo or the 20% discount, whichever is higher. A senior who is also a PWD gets one 20% discount per sale.
Sources
- Republic Act No. 9994, Expanded Senior Citizens Act of 2010. 20% discount and VAT exemption for seniors on listed goods and services, the IDs accepted, promo-or-discount-whichever-is-higher, and the discount as a deduction from gross income. https://lawphil.net/statutes/repacts/ra2010/ra_9994_2010.html. Checked .
- BIR RR No. 7-2010. Tax rules for the senior discount: the separate record of senior sales and the scope of covered food purchases. https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/55830. Checked .
- BIR RMC No. 38-2012 (copy hosted by a third party; no BIR-hosted copy found). Senior discount Q&A: remove the 12% VAT first, then take 20%; the group-meal formula. http://machicagroup.com/wp-content/uploads/2012/10/64655RMC-No-38-2012.pdf. Checked .
- Republic Act No. 10754 (PWD benefits, 2016). At least 20% discount and VAT exemption for PWDs on listed goods and services. https://lawphil.net/statutes/repacts/ra2016/ra_10754_2016.html. Checked .
- BIR RR No. 5-2017 (as published by NCDA). Worked examples for VAT and non-VAT sellers (₱1,120 sale), one 20% for a senior who is also a PWD, and the discount left out of the 3% percentage tax base. https://ncda.gov.ph/disability-laws/implementing-rules-and-regulations-irr/revenue-regulations-no-5-2017-rules-and-regulations-implementing-republic-act-no-10754/. Checked .
- BIR RR No. 10-2015 (BIR text as hosted by Grant Thornton). SC/PWD fields on CRM/POS invoices: TIN, OSCA or PWD ID number, the discount breakdown and the signature. https://www.grantthornton.com.ph/globalassets/1.-member-firms/philippines/tax-alerts/2015/rr-no.-10-2015.pdf. Checked .
- BIR RR No. 8-2023. No SC/PWD signature needed for purchases made online or through mobile apps. https://bir-cdn.bir.gov.ph/local/pdf/RR%20No.%208-2023.pdf. Checked .
- DTI-DA-DOE Joint Administrative Order No. 24-02, s. 2024 (signed 21 March 2024). 5% discount on basic necessities and prime commodities for seniors and PWDs, VAT not exempted, capped at ₱125 a week on ₱2,500 of purchases; BMBEs and cooperatives exempt. https://ncda.gov.ph/wp-content/uploads/2024/04/JAO-DTI-DA-DOE-No.-240-02-S2024.pdf. Checked .
- FDA Circular No. 2025-005 (4 September 2025). Carries out DOH AO 2024-0017, which dropped the purchase booklet for senior citizens buying medicines. https://www.fda.gov.ph/wp-content/uploads/2025/09/FDA-Circular-No.2025-005.pdf. Checked .
- Republic Act No. 11861, Expanded Solo Parents Welfare Act (2022). 10% discount and VAT exemption on baby items for a child up to six, for solo parents earning under ₱250,000 a year. https://lawphil.net/statutes/repacts/ra2022/ra_11861_2022.html. Checked .
- BIR RR No. 1-2023. The solo parent shows the Solo Parent ID and the Solo Parent Booklet. https://bir-cdn.bir.gov.ph/local/pdf/RR%20No.%201-2023.pdf. Checked .
- Republic Act No. 10699, National Athletes and Coaches Benefits and Incentives Act. 20% discount for national athletes and coaches on listed goods and services; no VAT exemption is stated. https://lawphil.net/statutes/repacts/ra2015/ra_10699_2015.html. Checked .