Senior citizens to start enjoying additional benefits
Senior citizens to start enjoying additional benefits
The implementing
rules and regulations of the Expanded Senior Citizens Act
(RA 9994) takes effect today, paving the way for the grant of additional tax
privileges and other benefits to senior citizens including VAT exemption on
their purchase of certain goods and services.
Though the BIR revenue regulations
implementing the tax provisions of RA 9994 is yet to be issued, we note that the draft does not
provide for special rules on the implementation of the VAT exemption of senior
citizens. Therefore, the usual VAT rules on VAT-exempt sale applies.
Hence, establishments which are
mandated to grant the discount and VAT exemption are reminded to comply
strictly with existing invoicing requirements for VAT-exempt transactions under
Revenue Regulations No. 16-05, and properly
account for the sale and the discount
for purposes of claiming the tax deduction pursuant to existing
regulations. Likewise, input VAT allocable to the exempt sale shall be excluded from
the creditable input VAT and, instead, accounted for as a cost of sale/service.
Please see attached copy of the IRR and draft BIR revenue regulations implementing the tax provisions of RA 9994.
P&A Tax Alerts are issued to keep our clients updated with the
latest tax developments. These are not intended to be a substitute for
professional advise. For inquiries and suggestions on how the Tax Alert may be even
more useful to you, e-mail Lina.Figueroa@ph.gt.com or Senen.Quizon@ph.gt.com
or call 886-5511.
For other tax concerns, please check out our other tax services.