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You are here: Home / Law and Taxation / FAQ:Senior

Citizen’s Discount in Restaurants In The Philippines

FAQ:Senior Citizen’s
Discount in Restaurants
In The Philippines
in LAW AND TAXATION on 02/10/14

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Farida of In Love With Sunflower


commented on my Senior Citizen
benefits post:
“It’s nice to be a senior because of
these benefits. Kidding aside,
there are some establishments
who do not honor the senior
citizen discount. Tsk tsk…”

! More FAQ on Senior Citizen’s

Discount and Tax Privileges here!

I bet most of you have parents or

relatives in their senior years
qualified for the benefits under
Republic Act No. 9994.

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But did you know that:

They don’t need their Senior
Citizen ID Card to enjoy the
benefits? Other cards are as good
as theSenior Citizen card. [
And…
Any person who refuses to honor
the Senior Citizen’s Card or
violates any provision of Republic
Act No. 9994 and its Implementing
Rules and Regulations may suffer
imprisonment of not less than two
years and a fine of
not less than P50,000.00 but not
exceeding P100,000.00?

Dining Out
with Our
Senior Loved
Ones
We show our love to our Senior
Citizen family members and
friends by treating them to a meal
every weekend. When dining out
with a Senior Citizen, keep the
following in mind:

I f a g ro u p o f 5
comprised of four
(4) N o n -S e n i o r
Citizens and one
(1) Senior Citizen
dines in a
re s t a u r a n t , h ow
s h o u l d t h e g ro u p
be billed?
In computing the 20% discount
and the exemption from VAT, the
formula shall be:
(Total Billing Amount/No. of
Customers) less 12%VAT * 20%
=Senior Citizen Discount
The formula above will apply if no
“individualized food item can be
ordered or if the transaction with
the Senior Citizen is not processed
separately. “ It is to be noted that
the total billing amount used in
the computation of the 20%
discount of the Senior Citizen is
the amount exclusive of VAT.
*To know how much is the VAT
component on any VAT purchase
we make, here is a sample
computation:
You bought a grocery item in the
amount of P112.00 inclusive of VAT
(take note: all your purchases from
VAT-registered establishments are
VAT-inclusive). How much is the
selling price net of VAT? How
much is the VAT?

Selling Price/1.12=Selling Price

Net of VAT
P112/1.12=P100.00
Selling Price Net of VAT =
P100.00
Value-added Tax of 12%=
P12.00
It is recommended that the food,
drinks and other consumable
items purchased by the Senior
Citizen in hotels and similar
lodging establishments,
restaurants, and recreation
centers should be processed
separately as an independent
transaction from his/her non-
eligible companions to ensure that
it is for his/her exclusive
consumption and enjoyment.

Fo r re s t a u r a n t s ,
a re condiments
and s i d e p ro d u c t s
c ove re d by the
Senior Citizen
discount and
VATexem m p t i o n?
Yes. For restaurants, the discount
shall be for the sale of food,
drinks, desserts and other
consumable items served by the
establishments, including value
meals and promotional meals,
offered for the consumption of the
general public.

Is t h e re a
maximum amount
or cap on the
discount that may
be g r a n te d to
Senior C i t i z e n s?
Fo r ex a m p l e , m a y
a restaurant l i m i t
the grant of
discount to
S e n i o r C i t i z e n s to
P4 0 e ve n i f t h e
c o m p u te d 20%
discount is higher
t h a n P4 0?
No. In no case shall the discount
granted to Senior Citizens in the
example be less than 20%. There
should be no fixed, maximum
amount or cap which will limit the
discount below the rate of 20%.
The 20% discount shall be given to
goods purchased by Senior
Citizens based on the selling price
exclusive of VAT.

Fo r set m ea l s ,
w h a t a re t h e rules?
The 20% discount and VAT
exemption shall also apply to set
meals purchased by Senior
Citizens, provided that the meal
shall be limited to a single-serving
meal with beverage for an
individual senior citizen. In case
the set meal is not limited to a
single serving and is shared with
Non-Senior Citizens, the value of
the food purchase attributable to
the Senior Citizen may be
computed in accordance with the
formula stated in the First
Question.

If a Senior Citizen
orders va r i o u s
dine-in foods,
t h e n t a ke s h o m e
t h e l e f tove r , i s t h e
o rd e r s u b j e c t to
2 0 % d i s c o u n t?
The 20% discount shall apply to
dine in, take-out and take-home
orders (excluding bulk orders) as
long as it is the Senior Citizen
himself/herself who is present and
personally ordering and can show
a valid Senior Citizen ID card.
In the example above, the Senior
Citizen merely takes home the
unfinished or unconsumed dine-in
order. He should be entitled to
the discount, provided that the
leftover is not part of bulk orders.

What i s t h e r u l e
for p u rc h a s e of
g ro u p m ea l s by
“g ro u p wa l k- i n s ”
or g ro u p
composed of all
S e n i o r C i t i z e n s?
If the group of diners is composed
of Senior Citizens who ordered for
group meals or food items for
sharing in restaurants, each Senior
Citizen with a valid Senior
Citizen’s ID card shall be entitled
to a 20% discount and VAT
exemption, hence, if all the Senior
Citizens in the group have valid
Senior Citizen’s ID cards, the
entire food purchase shall be
entitled to the 20% discount and
VAT exemption. In case not all the
Senior Citizens have their valid
Senior Citizen’s ID cards, the value
of the food purchase attributable
to Senior Citizens with Senior
Citizen’s ID cards may be
computed in accordance with the
formula stated above.

What a re
c o n s i d e re d “bulk
o rd e r s ” ?
Bulk orders are within the context
of pre-contracted or pre-arranged
group meals or packages, and
hence, not entitled to 20%
discount and VAT exemption.

A re s e t
o rd e r s p r i m a r i l y
m a r ke te d f o r
c h i l d re n l i ke
M c D o n a l d ’s H a p py
M ea l o r J o l l i b e e ’s
K i d d i e Meal entitled to
20% discount if purchased by
a S e n i o r C i t i z e n?

No, meals primarily prepared and

intentionally marketed for children
and not for Senior Citizen’s
personal consumption are not
entitled to 20% discount.

What comprises
the Most
Ex p e n s i ve M ea l
Co m b i n a t i o n
(MEMC)?
The MEMC is an amount
corresponding to the combination
of the most expensive and biggest
single-serving meal with beverage
served in a quick service
restaurant. The MEMC is deemed
flexible and is adjusted accordingly
by food establishments to
estimate a single food purchase
for an individual senior citizen.
MEMC is applied only to take-out,
take home, drive thru and delivery
orders.

A re p u rc h a s e s o f
“pasalubong” by
Senior Citizens
f ro m s to re s ,
k i o s ks , f o o d c a r t s
and stalls in food
c o u r t s s u b j e c t to
20% d i s c o u n t?
A re t h e y exe m p t
f ro m VAT ?
“Pasalubong “ food items which
are single-serving/solo meal for
the personal and exclusive
consumption of the Senior Citizen
are entitled to the 20% discount,
as well as the exemption from
VAT. However, oter “pasalubong”
food items (e.g. box of biscocho,
bottles of ube jam, several packets
of mango preserves, etc) which are
not for the personal and exclusive
consumption of the Senior Citizen
are NOT entitled to 20% discount
and VAT exemption. This limitation
extends to “novelty items” or non-
consumables sold in restaurants.

What a re the
rules for call-
i n /p h o n e - i n
o rd e r s?
Called-in or phoned-in orders are
actually delivery orders entitled to
20% discount and VAT exemption.
Hence, they are likewise subject to
certain conditions: i.e. senior
citizen ID card number must be
given while making the order over
the telephone: the senior citizen
ID card must also be presented
upon delivery to verify the identity
of the senior citizen entitled to
the 20% discount and VAT
exemption.
In case of called-in or phoned-in
orders of grouped meals, the food
establishment must determine the
number of senior citizens
composing the group and the 20%
discount shall be computed based
on the value of the food
attributable to the qualified senior
citizens. Likewise, the senior
citizen ID card number/s must be
given while making the order over
the telephone and the senior
citizen ID card/s must be
presented upon delivery to verify
the identity of the senior citizen/s
entitled to the 20% discount and
VAT exemption.

I s t h e p u rc h a s e o f
a whole c a ke
subject to 20%
d i s c o u n t?
A purchase of a whole cake may
be considered as a purchase of a
“group meal or meal for sharing.”
For instance, if the whole cake
purchased is good for five (5)
persons, and the group of diners is
composed of five (5) Senior
Citizens, each with a valid Senior
Citizen’s ID card, then they shall
be entitled to the 20% discount. If
the group of diners is composed of
Senior Citizens, but not all have
their valid Senior Citizen’s ID card,
or composed of Senior Citizens
and Non-Senior Citizens, the value
of the cake attributable to the
qualified Senior Citizen/s shall be
computed in accordance with the
formula above.
If a Senior Citizen purchases a
slice of cake or a personal serving
of cake, he shall be entitled to the
20% discount.

What is the rule

o n t h e p u rc h a s e
of double/family
p i z z a by a S e n i o r
C i t i z e n?
Pizza orders may be considered as
purchases of “group meal or meal
for sharing”. For instance, if the
pizza order is good for three (3)
persons and the group of diners is
composed of three (3) Senior
Citizens, each with a valid Senior
Citizen’s ID card, then they shall
be entitled to the 20% discount or
the entire food purchase shall be
entitled to the 20% discount.
If the group of diners is composed
of Senior Citizens, but not all have
their valid Senior Citizen’s ID cars,
or composed of Senior Citizens
and Non-Senior Citizens, the value
of the pizza attributable to the
qualified Senior Citizen/s shall be
computed in accordance with the
formula set forth above.

What is the rule

o n t h e p u rc h a s e
of alcoholic
p ro d u c t s s u c h a s
beer, wine and
other l i q u o r s?
A re they
c o n s i d e re d
“d r i n ks ” entitled
to the 20%
d i s c o u n t a n d VAT
exe m p t i o n?
Generally, alcoholic beverages are
not subject to the 20% discount
and VAT exemption especially if
purchased “in bulk”, “in buckets”
or “in cases”. However, if served
as a single serving drink, its
purchase by a Senior Citizen is
entitled to the 20% discount and
VAT exemption.
However, alcoholic beverages
purchased in a bar, club or cabaret
are exempt from VAT but subject
to amusement tax of 18% under
Section 125 of the Tax Code as
amended. A Senior Citizen may
still avail of the 20% discount on
the purchase of an alcoholic drink
but the discount shall be limited
only to a single serving of an
alcoholic beverage.
More on Senior Citizen benefits
like: Are cigars/cigarettes
considered consumables subject
to the 20% discount and other
issues here.

For complaints on any violation of

the Republic Act and its IRR, file
you complaints with the Office for
Senior Citizen Affairs (OSCA) under
the Mayor’s Office.

Source: BIR RMC

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