What You Need To Know About The VAT Exemption for PWDs

Good news for persons with disability and their families.

PWD exemption Philippines

President Benigno ‘Pnoy’ Aquino III signed the amendment of Republic Act 7277, or the Magna Carta for persons with disability (PWD), expanding the benefits and privileges of PWDs. This is according to the Official Gazette dated March 23, 2016.

The recently enacted law covers an estimate of 1.5 million Filipino citizens with disabilities.

Republic Act 10754 primarily grants value-added tax (VAT) exemption to PWDs on certain goods and services. A child, sibling, parent, and relative up to fourth civil degree of consanguinity or affinity who are caring for or have custody of a PWD can also claim the incentive. A P25,000 annual income tax deduction is also a privilege to family and relatives of PWDs.

(See Also: Discounts for Senior Citizens in the Philippines)

According to Senator Juan Edgardo Angara, RA 10754 “expands the benefits and privileges of PWDs and their families under the existing Magna Carta to further alleviate the plight of Filipino PWDs and promote their welfare.”

PWD benefits and privileges

At least 20% discount and VAT exemption on the following:

– Hotels and other lodging establishments

– Restaurants and recreational centers

– Medicine purchases

– Medical and dental services

– Domestic travel fees and land transportation

– Funeral and burial services

Special privileges

– Educational assistance to both private and public institutions

– Continuance of benefits from GSIs, SSS, Pag-ibig

– Special discounts on basic commodities purchase

– Priority lanes on establishments

Requirements for PWD ID

– Filled-out application form

– Two 1×1 ID pictures

– A duly-signed critical abstract by licensed physician

–Diana Lyn Balbalosa