Discount, VAT exemption applies to ‘group’ food order if for PWD exclusively – DOJ

MANILA, Philippines – The 20% discount that persons with disabilities (PWDs) are entitled to may apply to an entire food order ideally meant for a group if it is for the exclusive consumption of the person with disability, according to the Department of Justice (DOJ).

In a legal opinion, DOJ Assistant Secretary Randolph Pascasio highlighted the word “exclusive” used in both the law expanding the benefits and privileges of persons with disabilities, and its implementing rules and regulations (IRR).

According to the law, persons with disabilities are entitled to a 20% discount and value-added tax (VAT) exemption on their food purchases from restaurants as long as it is for their “exclusive use, enjoyment, or availment.”

The Department of Tourism echoes the same privilege in Memorandum Circular No. 2017-02 as it provides the discount and tax exemption in restaurants is for the “exclusive use, enjoyment or availment of PWDs.”

The DOJ said that the discounted orders should be limited only to the consumption of the person with disability to prevent abuse of the privilege in the establishments.

“While the above-mentioned relevant existing laws, IRR, and guidelines may be silent on how the 20% discount and VAT exemption will be applied on food purchases which are ideally for group sharing, we would like to emphasize the word ‘exclusive’ as the determining factor to be considered thereon,” the DOJ said.

“In other words, in purchase of a group meal which is ideally for food sharing, if it can be clearly determined that it was for the exclusive use, enjoyment, or availment of only one person who is a PWD, [that is,] dine-in transactions, then the 20% discount and VAT exemption should apply to the total amount of the food purchased,” it added.

Meanwhile, the DOJ said that establishments using online, phone call, and SMS transactions may be guided by the Bureau of Internal Revenue’s Memorandum Circular No. 71-2022.

This circular states that for group meals, the 20% discount for senior citizens and persons with disabilities will be applied “on the amount corresponding to the combination of the most expensive and biggest single serving meal with beverage served in a quick service restaurant.”

The circular also says that food establishments may adjust to estimate a single food purchase for a senior or PWD.

Consistent with current practice

The DOJ’s legal opinion stems from the National Council on Disability Affairs’ (NCDA) request for clarification on the application of the 20% discount and tax exemption when food is purchased ideally for group sharing.

The NCDA made the request when a certain Pheelyp Aytona wrote to the agency asking whether the discount and VAT exemption applies to all food and beverages that a PWD purchases and exclusively consumes in a restaurant regardless of the quantity.

NCDA executive director Glenda Relova noted in her letter that the current practice is that if the person with disability dines with a group and the purchased food is for group sharing, the discount will only be applied to the personal share of the PWD. This is computed by dividing the total amount to the number of persons in the group.

But if the person with disability buys a group meal that he or she consumes on her own, the discount and tax exemption applies for both dine-in and take-out.

Relova explained on a Teleradyo interview on Tuesday, October 15, that the clarification does not conflict with the current practice.

“Halimbawa po, ang isang person with disability ay um-order ng group meal at nag-dine in po siya, at nakita po na siya lang po ‘yung kumain mag-isa. ‘Yung buong group meal na ‘yun ay for the exclusive consumption of [a] person with disability, then entitled po siya ng buong 20% discount and VAT exemption sa buong price po nun,” said Relova.

(For example, a person with disability orders a group meal, he or she dined in, and that person is seen eating alone. If that entire group meal is for the exclusive consumption of a person with disability, then he or she is entitled to the entire 20% discount and the VAT exemption for the total price.)

Relova contrasted this with an example of four people dining out, with two people being PWDs. The discount and VAT exemption would then be applied to half of the total bill. – Rappler.com