A joint memorandum circular now provides guidelines on the provision of 30% discount and VAT exemption for senior citizens and People with Disabilities (PWDs) on their purchases through online and phone call or SMS.
Issued last May 6, 2022, JMC No. 01, series of 2022, will take effect 30 days from its publication in a national newspaper.
The circular was signed by DSWD Sec. Rolando Joselito Bautista, DTI Sec. Ramon Lopez, DILG Sec, Eduardo Año, National Commission of Senior Citizen chairperson Atty. Franklin Quijano, BIR Commissioner Caesar Dulay and National Council for Disability Affairs executive director Engr. Emerito Rojas.
It is primarily aimed at ensuring and requiring persons and business establishments to comply with existing relevant rules and guidelines, particularly on the grant of Senior Citizen and Persons with Disability discounts mandated by law on the purchase of covered goods and services using the digital/online platforms.
Covered by the circular are all persons and business establishments engaged in the sale of goods and services using the open network or the internet, as well as all transactions made through the telephone, mobile phone or phone applications.
Under the law, senior citizens and PWDs are granted the VAT-exempt 20% discount on goods and services and a 5% special discount on basic necessities and prime commodities.
The total amount of offline and online purchase of Senior Citizens and Persons with Disability per calendar week shall not exceed the amount of P1,300.00 without carry-over of the unused amount, it stated, provided that the purchase of medicine shall no longer be limited by the P1,300.00 ceiling as provided by a DTI-DA-DOE Joint Administrative Order.
The same amount shall be spend on commodities commensurate to his/her personal and exclusive consumption and/or enjoyment within the calendar week, provided that it shall be spent on at least four (4) items identified as Basic Necessities and Prime Commodities.
Under the new guidelines, the senior citizen or PWD, must, prior to the placement of order, declare to the online platform/merchant that he/she is a Senior Citizen or PWD.
Upon confirmation of the order, the Senior Citizen or PWD must provide or attach a scanned copy, screenshot or image of his or her ID.
In case of purchase of medicines, they must also attach a copy of the medical prescription and a cooy of the front page and last entry page of the purchase booklet.
For purchases of basic necessities and prime commodities, a copy of the front page and last entry page of the purchase booklet for commodities must be attached.
Upon delivery of the orders or performance of the service purchased online, the senior citizen or PWD shall present the original copy of the proof of entitlement which was attached during the confirmation of order.
In case of failure to present such proof, the merchant may charge the senior citizen/PWD the full amount of the goods/service.
For purchases through telephone or mobile phone calls, the senior citizen/PWD must upon placement of order provide his/her name, date of birth, and ID number as proof of discount entitlement.
The business establishment shall exert effort and ask the customer if he/she is a senior citizen or PWD, with the same previous procedure applying upon delivery of the goods.
The purchases can also be made through an authorized representative, who must present the OSCA or PWD ID, purchase booklet, authorization letter, ID of the representative and the medical prescription ion case of medicine purchase.
Business establishments shall have the right to act on any abuse, misrepresentations, falsification, or any other acts contrary to law on the availment of the senior citizen/PWD discount by blocking or suspending the account or name of the erring person. It may also file the appropriate administrative or court case as they may seem fit.
On the other hand, any individual or establishment who fails or refused to observe the statutory discount afforded to senior citizens and PWDs may be held liable for the penalties provided by law.