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Senior citizen and PWD discount

Philippine law entitles senior citizens and persons with disability to a 20% discount and VAT exemption on their share of a restaurant bill, on presentation of a valid ID.

This is general information, not tax or legal advice — confirm the current rule with your accountant or the BIR before relying on it.

Not yet reviewed by an accountant or BIR consultant.

Formula

Eligible share = bill ÷ diners × eligible diners. Discount = 20% of that share, which is also VAT-exempt.

Worked example

  1. A ₱2,000 bill for four diners, one of them a senior.
  2. Their share is ₱2,000 ÷ 4 = ₱500, which becomes VAT-exempt.
  3. The discount is 20% of ₱500 = ₱100. The remaining ₱1,500 stays vatable.

Why it matters

It is statutory, it is checked, and getting it wrong on a receipt is a tax problem rather than a service problem.

The arithmetic is not obvious — it is a per-diner proration with a VAT consequence, not 20% off the total — which is exactly why it should not be typed by a cashier.

Keep the ID details on the bill, not just the discount. The claim is what makes the VAT exemption defensible, and a receipt showing a discount with no cardholder recorded is the version that causes trouble later.

In MangoHost

The claim is captured — senior or PWD, cardholder name, ID number, and how many diners are eligible — validated against the cover count, and the amount computed server-side. A cashier cannot type the figure, because a keying error should not become a tax position.

Restaurant add-on →

Related terms

  • BIR registrationBIR registration is a property's registration with the Bureau of Internal Revenue — the tax registration that makes it a legal business.
  • BIR POS accreditation (Permit to Use)BIR POS accreditation — formally a Permit to Use (PTU) — is a separate approval from your business's own BIR registration: it certifies a specific computerised system to issue official receipts and sales invoices.
  • FolioA folio is the running account attached to a stay — the room charge plus everything the guest adds to it, settled at check-out.

MangoHost gives Philippine properties these numbers without a month-end spreadsheet. Book a 30-minute walkthrough and see them on your own rooms.