BIR Issues Regulation for Senior Citizens and PWDs to Avail of Discounts for Online Transactions

On 25 July 2023, the Bureau of Internal Revenue (“BIR”) issued Revenue Regulations (“RR”) No. 8-2023 which tackles the matter of official receipts/sales invoices on purchases of Senior Citizens (“SCs”) and Persons with Disabilities (“PWDs”) through online/e-commerce or mobile applications, in relation to RR No. 10-2015.

RR No. 8-2023 refers to the issuance of Joint Memorandum Circular No. 01, Series of 2022 (“JMC No. 1, s. 2022”) which highlighted the mandatory benefits of SCs/PWDs even for online transactions and its relation to the substantiation requirement under RR No. 10-2015 which requires the signature of the SC/PWD on the receipt/invoice. 

RR No. 8-2023 recognized that the digital means of validation of benefits entitlement were not contemplated when RR No. 10-2015 was issued.

Given this concern, RR No. 8-2023 clarified that the signature of the SC/PWD, as contemplated in RR No. 10-2015, shall not be required for qualified purchases made by SCs/PWDs online or through mobile applications. Nonetheless, the SC/PWD Identification Card number should still be provided by the SC/PWD when purchasing through online or mobile platforms; and the rules on entitlement to the benefits of the SC/PWD and to the tax deduction, pursuant to RR No. 7-2010, as amended; RR No. 5-2017, as amended; JMC No. 01, s. 2022; and future issuances pertaining to SC/PWD purchases through online or mobile applications, shall be strictly followed.