Under Republic Act No. 9994, Grants Senior Citizen Benefits and privileges to Senior Citizens and part of this is the Senior Citizens Discount! There has been a confusion on how to apply this discount, some offer to little and others offer too much. Here is how to compute foe the Senior Citizen Discount.
REPUBLIC ACT NO. 9994
AN ACT GRANTING ADDITIONAL BENEFITS AND PRIVILEGES TO SENIOR CITIZENS, FURTHER AMENDING REPUBLIC ACT NO. 7432, AS AMENDED, OTHERWISE KNOWN AS “AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES”
REPUBLIC ACT NO. 10754
It is the objective of Republic Act No. 10754 to provide persons with disability the opportunity to participate fully into the mainstream of society by granting them at least twenty (20%) discount and exemption from the value added tax on the sale of certain goods and services
How to Compute Senior Citizen & PWD Discount
1. A senior citizen is exempted from paying Value Added Tax (VAT). To compute the VAT-exempt sales, divide the selling price by the VAT rate.
Formula: Selling Price ÷ VAT Rate = VAT Exempt Sales
Example:
Product Price: PHP 800
VAT Rate: 12%
Solution: PHP 800 ÷ 1.12 = PHP 714.29
2. Senior citizens are entitled to a 20% discount upon purchase of goods and services. To compute for the discount, deduct the percentage by multiplying the VAT exempt sales by 20%.
Formula: VAT Exempt Sales x 20% = Senior Citizen Discount/PWD
Solution: PHP 714.29 x 0.20 = PHP 142.86
3. To identify the billable amount, subtract the VAT exempt sales by senior citizen discount.
Formula: VAT Exempt Sales – Senior Citizen Discount = Billable Amount
Solution: PHP 714.29 – PHP 142.86 = PHP 571.43
Use our Senior Discount / PWD Calculator
In summary, if you shop at least once for a senior citizen discount, you’ll notice the difference in savings. Knowing the different discounts available and your rights to use them can help you save money on your everyday purchases. The senior citizens discount is not just for things like movie ticket discounts or the occasional free coffee.
Launch the Senior Discount / PWD Calculator
Save this Calculator for easy reference and computation of your Senior and PWD Discount!
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Source: https://www.officialgazette.gov.ph/2016/03/23/republic-act-no-10754
